TotalEnergies has entered into two separate agreements in the European renewables sector involving the acquisition of assets from Shell and the partial sale of a portfolio to KKR.
The agreement with Shell covers TotalEnergies’ acquisition of the former’s entire European onshore renewables business. This transaction includes 500MW of solar and wind projects either operational or under construction, primarily in Italy and the Netherlands.
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In addition, the deal encompasses a 3.5GW pipeline of solar, wind and battery storage projects in development in Italy, the UK and Spain.
In total, the portfolio to be acquired by TotalEnergies amounts to 4GW. Upon completion, TotalEnergies will become the sole owner of these assets.
Shell stated that this divestment is in line with its strategy to manage its power portfolio and focus on areas where it can deliver higher long-term value.
Shell downstream, renewables and energy solutions president Machteld de Haan said: “This agreement reflects Shell’s continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at Capital Markets Day 2025.
“We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.”
Separately, TotalEnergies has signed a sale agreement with an insurance account managed by KKR for a 50% stake in a 1.2GW onshore solar and wind asset portfolio.
This portfolio, which has an enterprise value of €1.8bn ($2.07bn), includes assets in Germany, Spain, France and Poland.
The electricity from these assets is either already sold to third parties or will be marketed by TotalEnergies. After the transaction, TotalEnergies will retain a 50% stake and continue to operate the portfolio.
Both transactions are expected to be completed by the end of 2026, pending regulatory approvals.
TotalEnergies gas, renewables and power president Stéphane Michel said: “In line with our strategy, these two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy.
“The acquisition of Shell’s onshore renewables assets in Europe strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain, complementing the flexible generation capacity of the gas-fired power plants of TTEP, our joint venture with EPH, particularly in Italy, the Netherlands and the UK.
“In addition, with this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE [return on average capital employed] of 12% by 2030.”
TotalEnergies’ European renewables asset portfolio now stands at nearly 10GW of gross installed capacity or capacity under construction, with an additional 27GW under development.
The company’s recent activity forms part of a broader strategy to focus on selected deregulated markets and optimise capital allocation in renewables.
Last month, a consortium led by TotalEnergies, alongside Hydra Storage Holding and Reatile Renewables, opened a hybrid renewable energy project in Northern Cape, South Africa.
