TotalEnergies, the French energy giant,\u00a0has signed an agreement to\u00a0acquire\u00a0Shell\u2019s onshore renewables business in Europe, while separately agreeing to sell a 50% stake in a portfolio of developed renewable assets to investment firm KKR.\u00a0<\/p>\n
The acquisition from Shell includes 500 MW of solar and wind assets that are either\u00a0operating\u00a0or under construction, along with a 3.5 GW pipeline of solar, wind,\u00a0and battery energy storage projects.\u00a0The\u00a0assets are\u00a0located\u00a0across Italy, the Netherlands, Spain,\u00a0and the UK. According to TotalEnergies, the acquisition will expand its power generation activities in\u00a0these\u00a0four European markets.\u00a0<\/p>\n
Once complete, TotalEnergies says its\u00a0European renewables portfolio will total\u00a0nearly 10\u00a0GW of gross installed capacity or capacity under construction, with another 27 GW under development.\u00a0<\/p>\n
Separately, TotalEnergies has agreed to sell a 50% stake in a 1.2 GW onshore solar and wind portfolio to an insurance account managed by KKR. The\u00a0\u2018largely developed\u2019\u00a0portfolio, valued at an enterprise value of \u20ac1.8 billion, includes assets in Germany, Spain, France,\u00a0and Poland.\u00a0\u00a0<\/p>\n
TotalEnergies will\u00a0retain\u00a0the remaining 50% stake and continue\u00a0operating\u00a0the assets after the transaction closes.\u00a0Both transactions are expected to close by the end of 2026, subject to regulatory and customary approvals.\u00a0<\/p>\n
St\u00e9phane Michel, President, Gas, Renewables & Power at TotalEnergies, said, \u201cIn line with our strategy, these two transactions enable us to optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy.\u201d The company\u00a0aims to achieve 100 TWh of power generation capacity by 2030,\u00a0with around 70% from renewable and 30% from flexible generation.\u00a0\u00a0\u00a0<\/p>\n
Michel\u00a0explained that the Shell deal\u00a0expands\u00a0TotalEnergies’ renewable portfolio in strategic deregulated European markets, while the KKR deal monetizes mature assets to recycle capital and support its Integrated Power growth strategy.\u00a0<\/p>\n
TotalEnergies recently sold its distributed solar business in Europe as it trains\u00a0lens\u00a0on large-scale wind and solar assets in the region (see\u00a0TotalEnergies Exits European Distributed Solar Business<\/a>).\u00a0<\/p>\n For\u00a0Shell,\u00a0the sale reflects its strategy of actively managing its power portfolio, as announced at the company\u2019s\u00a0Capital Markets Day 2025. It is\u00a0directing capital to areas where it sees stronger long-term value.\u00a0Its target is to invest about\u00a0$8 billion\u00a0annually in its Downstream and Renewables & Energy Solutions businesses while reserving\u00a0$12 billion\u00a0to\u00a0$14 billion\u00a0annually for\u00a0the\u00a0Integrated Gas and Upstream segment.\u00a0<\/p>\n Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell,\u00a0said,\u00a0\u201cWe are recycling capital and\u00a0prioritising\u00a0areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.\u201d\u00a0<\/p>\n