EnBW has joined with EWE Offshore, the Leibniz University of Hanover and SkySails Power to investigate the SkyPower100 system.
The project also has funding from the German economy ministry.
A single 100kW fully automated kite turbine is expected to be in testing by 2020.
EnBW said it would be responsible for the licensing and investigating the potential for kite systems.
The Leibniz University of Hanover will design and analyse the powertrain, SkySails is responsible for the kite system, while EWE will research site locations, foundations and grid connections for the pilot site.
The consortium will also look at scaling the design to the 1MW-plus class, improve efficiency and to adapt the technology for offshore use.
Dutch energy firm Shell backed a similar kite system in May 2017. The 500kW pilot project by KPS in Scotland received a £5 million investment from Shell, E.on and Schlumberger.
KPS’s test programme is taking place in South West Scotland. It is currently testing a small-scale 40kW kite system with the aim of finalising a preferred design for a 500kW prototype hybrid wing demonstrator for trials in 2019.
Last month, Windpower Monthly investigated airborne wind energy systems (AWES).