Joint Energy Venture of EP Group and Total Energies

Over the past 15 years, EP Group has grown, expanding from a predominantly Czech and Slovak company into Western Europe and becoming one of the largest Czech firms. At the beginning of the week, the group took another major step forward by creating a joint venture with TotalEnergies, the world's 5th largest oil and gas company.

The joint venture will be owned 50/50 by both parties, with EP Group contributing its non-coal power plants and battery storage facilities in the UK, Ireland, Italy, Netherlands, and France, valued at a total of 10.6 billion euros. This includes 15 gas power plants with a total capacity of 10.9 GW, 2 additional gas power plants under construction with a capacity of 2.4 GW, and 4 biomass power plants with a capacity of 450 MW. It also involves 750 MW of battery storage under construction and 4.9 GW of planned battery storage. The total electricity production will be divided among the owners via a tolling agreement, allowing them to trade independently.

What does the entrance of TotalEnergies bring? In addition to securing gas supplies, EP Group will acquire shares in TotalEnergies valued at a total of 5.1 billion euros (123.5 billion CZK), accounting for a 4.1% stake.

This energy shuffle surpasses the largest transactions in recent years, whether it be this year’s Zentiva sale for 100 billion CZK or the previous major transaction by EP Group – the acquisition of Royal Mail for 3.6 billion pounds.

The transaction must be approved by the appropriate regulatory authorities and in France, negotiations and approval must occur with employee representatives. Completion is expected by mid-2026.

Even after the creation of the joint venture, EP Group will remain independently active in Western Europe through a wide portfolio of companies. This includes energy trader EP Commodities, operator of heating plants and gas infrastructure EP Infrastructure, as well as solar and wind power plants in France's Gazel Energie. The group will also continue operating coal power plants, which EPH intends to gradually close by 2030.