TotalEnergies has signed agreements to acquire Shell’s onshore renewables business in Europe and to sell a 50% stake in a 1.2GW renewables portfolio to KKR.
The French company said it has agreed to acquire Shell’s entire onshore renewables business in Europe, including 500MW of solar and wind assets in operation or under construction, mainly located in Italy and the Netherlands, together with a 3.5GW pipeline of solar, wind and battery storage projects in Italy, the United Kingdom and Spain.
TotalEnergies added that the transaction is expected to complete by the end of 2026, subject to approval by the relevant authorities, with the portfolio to be wholly owned by the company upon completion.
The acquisition covers a 4GW renewables portfolio and complements TotalEnergies’ power generation activities in four key European countries.
TotalEnergies said the transaction strengthens its European renewables asset portfolio, which amounts to nearly 10GW of gross installed capacity or capacity under construction and 27GW under development.
The company has also signed an agreement with an insurance account managed by KKR for the sale of a 50% stake in a 1.2GW onshore solar and wind asset portfolio in Europe with an enterprise value of €1.8 billion.
TotalEnergies stated that the portfolio includes assets in Germany, Spain, France and Poland.
The company said the electricity produced by the assets is already sold to third parties or will be marketed by TotalEnergies.
TotalEnergies will retain a 50% stake in the assets and continue to operate them after completion of the transaction, which is expected in 2026 and remains subject to customary 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,” said Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies.
“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,” he said.
“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.”
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