Dive Brief:

• German energy giant Innogy, recently spun off from utility RWE, is targeting the United States in its global expansion plans, eyeing electric vehicle charging stations and wind farms, as well as other grid modernization efforts.
• Citing reports in a German newspaper, Welt am Sonntag, Reuters reports Innogy wants to invest more than $7 billion to expand globally between 2016 and 2018.
• In August, Innogy announced it would acquire Belectric Solar & Battery, which has targeted the United States for growth projects.

Dive Insight:

Grid modernization efforts in the United States are attracting international investors, among them German's Innogy, which is interested in developing wind farms and vehicle charging stations.

CEO Peter Terium told Welt am Sonntag, "three weeks ago we persuaded Californian authorities to accept the German norms and standards for electric car charging stations," explaining it could also help German car manufacturers access new markets.

The company has installed more than 3,000 EV charging stations in Germany. In August, Innogy announced plans to take over a solar and battery company with international aspirations.

In a statement, the company said "the takeover of BELECTRIC Solar & Battery instantly makes Innogy an international player on the market for utility-scale photovoltaic power plants and battery storage technologies, which is entirely in line with innogy’s corporate strategy."

The company identifies its growth markets as the Middle East, North Africa, India, South America and the United States.

“With Innogy we are creating the innovative, decentralised and sustainable energy company of the future," said CEO Peter Terium. "Smart battery storage solutions make generating electricity from renewables both more efficient and more secure ... We are now combining our complementary strengths and creating additional impetus to successfully implement our projects in Europe and our growth regions – the whole will be greater than the sum of its parts.”

Innogy itself was listed on the Frankfurt stock exchange for the first time last week following a spinoff from German utility giant RWE. By separating its renewables, infrastructure and electricity retailing business in Innogy, RWE hopes to reduce its debt and fund cleanup and waste storage at nuclear sites, according to Barrons. The utility sold shares representing 25% of Innogy's value, which could drive a 20% rise in RWE's stock over the long term, according to the financial magazine.

RWE and other German utilities have been squeezed by low commodity prices and the proliferation of distributed resources. In September, E.ON spun off 50% of its conventional fossil fuel business into Uniper SE, but investors have viewed that move with skepticism because the renewables-heavy utility still retains its troubled nuclear business, according to the Wall Street Journal.