Germany’s MEAG has agreed to acquire an under-development battery project in Germany, marking its first investment in the sector as it looks to further grow its renewables portfolio.

The Munich-based asset manager’s equity arm will invest around EUR 90m into a battery developed by German solar and storage company SMA, with an overall capacity of 92.5MW, sources said.

MEAG and SMA signed the deal in the summer but official announcements are expected next month after all required clearances and approvals are secured, the sources added.

SMA is currently developing the project and is expected to complete it in around one year, after which MEAG will take over 100% ownership of the battery, according to the sources.

This is the first standalone investment by MEAG’s equity arm in a battery and is a result of bilateral talks between the two parties, as the transaction did not hit the market.

SMA specialises in the development of solar PV and battery projects and its solar inverters installed worldwide have a total output of around 132 GW, according to the company’s website.

MEAG has been increasingly investing in renewable energy assets in recent years, either via its debt or equity arms.

Late last year, it teamed up with DWS for the acquisition of German biogas producer and developer Weltec Biopower from family-owned pig food supplier Weda Dammann & Westerkamp.

Its portfolio also includes several onshore wind and solar projects in countries including Germany, the UK and Sweden.

MEAG is preparing to launch a sale of a 157 MW portfolio of operational onshore wind and solar PV assets in the UK, advised by Evercore, as reported last week.

SMA and MEAG did not respond to requests for comment.