TotalEnergies has signed an agreement with Shell to acquire its entire onshore renewable energy business in Europe as part of efforts to expand its integrated power strategy across key European markets.
The acquisition covers 500 megawatts (MW) of solar and wind assets currently in operation or under construction, mainly located in Italy and the Netherlands.
The portfolio also includes a 3.5 gigawatt (GW) pipeline of solar, wind and battery storage projects across Italy, the United Kingdom and Spain.
Upon completion of the transaction, expected by the end of 2026 and subject to regulatory approvals, TotalEnergies will take full ownership of the assets.
The company said the acquisition will strengthen its renewable energy position in Europe, where it currently has nearly 10GW of gross installed renewable capacity or capacity under construction, alongside 27GW under development.
In a separate transaction, TotalEnergies confirmed that it has signed an agreement with an insurance account managed by KKR to sell a 50 per cent stake in a 1.2GW portfolio of onshore solar and wind assets in Europe.
The portfolio, valued at an enterprise value of €1.8bn, includes renewable energy assets located in Germany, Spain, France and Poland.
TotalEnergies will retain the remaining 50 per cent stake and continue operating the assets after the transaction, which is also expected to close in 2026 subject to customary conditions.
The company said the two transactions demonstrate its strategy of optimising capital allocation in renewable energy while continuing to expand its integrated electricity business.
“These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.
Michel added that the acquisition of Shell’s renewable assets would strengthen the company’s power generation activities in deregulated European markets and support its broader electricity value chain strategy.
He also said the agreement with KKR highlights TotalEnergies’ ability to execute its renewable energy business model and achieve its target of a 12 per cent return on average capital employed (ROACE) for its Integrated Power division by 2030.
