Shell has signed an agreement to sell its European onshore renewables portfolio to TotalEnergies as it reshapes its power business and reallocates capital toward areas where it sees stronger competitive advantages.
The portfolio comprises approximately 0.5 gigawatts of combined renewable generation capacity in operation and under development, along with a pipeline of potential future projects. The assets are located across Italy, the Netherlands, Spain and the UK.
Shell did not disclose the financial terms of the transaction or provide a breakdown of the portfolio by technology, country or development status.
The sale remains subject to regulatory approvals and is expected to close by the end of 2026.
Shell said the transaction forms part of the strategy presented at its 2025 Capital Markets Day, under which the company is actively managing and “high-grading” its power portfolio. The energy major is prioritizing asset-backed power trading, access to flexible generation capacity and customer-focused energy services while maintaining its focus on capital returns.
The agreement represents another step in Shell’s effort to concentrate investment in parts of the power market that complement its trading and customer businesses. TotalEnergies, meanwhile, will acquire a mixture of operating capacity, projects under development and a broader future-development pipeline across several established European renewable energy markets.
Neither company disclosed how the transaction would affect employees, future project investment or the ownership structure of individual assets.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you’ll always know why the market is moving before everyone else.
You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions – and we’ll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.