Renewables in Europe: TotalEnergies Acquires Shell's Renewables Business and Sells a 50% Stake in a Portfolio of Developed Assets to KKR

As part of its Integrated Power strategy in Europe, which focuses on selected deregulated markets, and its capital-efficient approach to renewable energy investments, TotalEnergies has signed two new transactions in Europe.

The acquisition of a 4 GW renewables portfolio from Shell, including 500 MW of solar and wind assets in operation or under construction.

TotalEnergies has agreed to acquire Shell’s entire onshore renewables business in Europe, including 500 MW of solar and wind assets that are either operational or under construction, primarily in Italy and the Netherlands. The deal also includes a 3.5 GW development pipeline of solar, wind, and battery storage projects across Italy, the United Kingdom, and Spain.

Once completed, the portfolio will be fully owned by TotalEnergies. The transaction is expected to close by the end of 2026, subject to approval from the relevant authorities.

The acquisition strengthens TotalEnergies’ Integrated Power strategy in Europe by expanding its presence in four key markets. It also enhances the company’s European renewable energy portfolio, which currently comprises nearly 10 GW of installed or under-construction capacity and an additional 27 GW of projects under development.

The sale to KKR of a 50% stake in an already largely developed 1.2 GW renewables asset portfolio for an enterprise value of €1.8 billion.

TotalEnergies has signed an agreement with an insurance account managed by KKR to sell a 50% stake in a 1.2 GW portfolio of onshore solar and wind assets in Europe, reaffirming its strategy of carrying out partial farm-downs as part of its renewables business model. The portfolio has an enterprise value of €1.8 billion.

The transaction includes renewable energy assets located in Germany, Spain, France, and Poland. Electricity generated by the portfolio is either already contracted for sale to third parties or will be marketed by TotalEnergies.

Following the transaction, TotalEnergies will retain the remaining 50% stake and continue operating the assets. The deal is expected to be completed in 2026, subject to customary closing conditions.

“In line with our strategy, these two transactions enable us to optimize 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 United Kingdom,” said Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies. “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 of 12% by 2030.”