ENGIE enters partnership with CBRE Investment Management for 2.4 GW portfolio of Battery Storage Assets in the U.S.

Rhea-AI Summary

ENGIE North America has formed a strategic partnership with CBRE Investment Management for a significant 2.4 GW battery storage portfolio across Texas and California. The portfolio encompasses 31 operational projects in ERCOT and CAISO territories, marking one of the largest battery storage financing transactions in the sector. ENGIE will maintain a controlling stake while continuing to operate and manage the assets.

This partnership represents one of ENGIE's largest operating portfolio partnerships in the U.S., showcasing the company's substantial presence in North America with over 11 GW of renewable production and battery storage in operation or construction. The transaction aligns with ENGIE's strategy of capital recycling while expanding its partnership base with globally recognized investors.

Positive

• One of the largest battery storage financing transactions in the sector's history
• ENGIE retains controlling share and operational control of the assets
• Portfolio spans 31 operational projects across strategic ERCOT and CAISO territories
• Partnership enables ENGIE to recycle capital while maintaining operational control
• Demonstrates ENGIE's strong market position with 11 GW of renewable and storage capacity

Negative

• None.

Insights

Energy Infrastructure Investment Specialist

CBRE IM's investment in ENGIE's 2.4 GW battery storage portfolio represents a major transaction that validates the maturation of grid-scale storage as an asset class.

This partnership between ENGIE and CBRE Investment Management represents a landmark transaction in the energy storage sector. With 2.4 GW of battery storage assets across 31 projects in ERCOT (Texas) and CAISO (California) territories, the scale is truly significant. These are two markets facing serious grid reliability challenges due to increasing renewable penetration and extreme weather events.

The structure of this deal is particularly noteworthy - ENGIE maintains operational control while recycling capital through CBRE IM's investment. This demonstrates the growing sophistication in how energy infrastructure assets are being monetized without sacrificing strategic operational priorities. For ENGIE, with over 11 GW of renewable and storage assets in operation or construction across North America, this transaction allows them to free up capital for future development while keeping their operational expertise engaged.

From CBRE Investment Management's perspective, this represents a strategic expansion into what they term "infrastructure 2.0 assets" - next-generation infrastructure investments aligned with digitalization and decarbonization trends. Battery storage assets typically generate revenue through capacity payments, ancillary services, and energy arbitrage opportunities, providing relatively stable returns despite being newer technology infrastructure.

The significance extends beyond these two parties - this transaction helps establish market valuations and partnership structures for large-scale battery storage portfolios, potentially accelerating institutional investment in this critical grid infrastructure sector. While specific financial terms weren't disclosed, deals of this magnitude tend to run into the hundreds of millions, if not billions, of dollars.

One of largest battery storage financing transactions to date 

HOUSTON, May 15, 2025 /PRNewswire/ -- ENGIE North America (ENGIE) announced that it has entered into a partnership with funds managed by CBRE Investment Management (CBRE IM) on a portfolio of battery storage assets in Texas and California.

This transaction is one of ENGIE's largest operating portfolio partnerships in the U.S. and one of the sector's largest sales completed to date. ENGIE will retain a controlling share in the portfolio and will continue to operate and manage the assets.

The 2.4 GW portfolio consists of 31 projects in operation in Electric Reliability Council of Texas (ERCOT) and California Independent System Operator (CAISO) territories.

"We are delighted that ENGIE and CBRE IM are partnering in this industry-leading transaction, supporting 2.4 GW of storage that will support the growing demand for power in Texas and California. The scale of this portfolio reflects ENGIE's commitments to meeting the energy needs of the U.S. and increasing the resilience of the ERCOT and CAISO grids," said Dave Carroll, Chief Renewables Officer and SVP, ENGIE North America. "CBRE IM's investment reflects their confidence in ENGIE's proven track record in developing, building, operating and financing renewable assets, both in North America and globally."

ENGIE is a leader in meeting growing energy needs in North America where it currently has more than 11 GW of renewable production and battery storage in operation or construction. This transaction supports ENGIE's strategy in North America by simultaneously recycling capital and adding a leading, globally recognized investor to ENGIE's select pool of partners. The size of this portfolio focused on battery storage assets reflects ENGIE's global aspirations to grow in this space.

"We are excited to partner with ENGIE on this high-quality, scaled battery storage portfolio with a strong operating track record," said Robert Shaw, Managing Director, Private Infrastructure Strategies at CBRE Investment Management. "This investment reflects our proven strategy of investing in infrastructure 2.0 assets that leverage the breadth of the CBRE IM platform and benefit from strong contracted revenue and macro digitalization and decarbonization tailwinds."

About ENGIE North America
Based in Houston, Texas, ENGIE North America Inc. is a regional hub of ENGIE, a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With 98,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to local authorities and businesses. Every year, ENGIE invests more than €10 billion to drive forward the energy transition and achieve its net zero carbon goal by 2045. ENGIE (ENGI), is listed on the Paris and Brussels Stock Exchanges.  For more information on ENGIE in North America, please visit our website at www.engie-na.com or our LinkedIn page at www.linkedin.com/company/engie-north-america-inc.

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $149.1 billion in assets under management* as of March 31, 2025, operating in 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

Contacts:

ENGIE North America
Michael Clingan, External and Press Relations
Michael.clingan@external.engie.com
C +1 832-745-6057

CBRE IM
Josh Stoffregen-Foye
Head of Media Relations
CBRE Investment Management
200 Park Avenue | Suite 2001 | NY, NY 10166
C +1 347-882-0148
josh.stoffregenfoye@cbreim.com | LinkedIn

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SOURCE Engie North America Inc.

FAQ

What is the size of ENGIE and CBRE's battery storage partnership portfolio?

The partnership involves a 2.4 GW battery storage portfolio consisting of 31 operational projects across Texas and California.

Will ENGIE maintain control of the battery storage assets after the CBRE partnership?

Yes, ENGIE will retain a controlling share in the portfolio and continue to operate and manage the assets.

How many operational projects are included in the ENGIE-CBRE battery storage portfolio?

The portfolio includes 31 operational projects located in ERCOT (Texas) and CAISO (California) territories.

What is ENGIE's current renewable and storage capacity in North America?

ENGIE has more than 11 GW of renewable production and battery storage in operation or construction in North America.

Which markets will the ENGIE-CBRE battery storage portfolio serve?

The portfolio will serve the Electric Reliability Council of Texas (ERCOT) and California Independent System Operator (CAISO) territories.