TotalEnergies (EU:TTE) has agreed to acquire Shell’s (LSE:SHEL) onshore renewable energy business in Europe while simultaneously selling a 50% interest in a €1.8 billion renewable asset portfolio to KKR, continuing its strategy of recycling capital to fund growth across its Integrated Power business.
The French energy group announced on Monday that the two transactions are designed to strengthen its electricity generation platform while optimising investment across its expanding renewables portfolio.
Shell Deal Adds Renewable Assets Across Key European Markets
Under the agreement, TotalEnergies will purchase Shell’s entire European onshore renewables business.
The acquisition includes around 500 megawatts of solar and wind capacity that is either already operational or currently under construction, with most of the assets located in Italy and the Netherlands.
The transaction also includes a development pipeline of approximately 3.5 gigawatts covering solar, wind and battery storage projects across Italy, the United Kingdom and Spain.
Once regulatory approvals have been obtained and the transaction is completed, which is expected before the end of 2026, TotalEnergies will assume full ownership of the portfolio.
KKR Investment Supports Capital Recycling Strategy
In a separate transaction, TotalEnergies has agreed to sell a 50% stake in a portfolio of onshore solar and wind assets to an insurance account managed by global investment firm KKR.
The portfolio comprises approximately 1.2 gigawatts of renewable generation capacity located in Germany, Spain, France and Poland and carries an enterprise value of €1.8 billion.
Electricity generated by these assets has already been contracted to third parties or will continue to be marketed by TotalEnergies.
Following completion of the transaction, expected during 2026 subject to customary closing conditions, TotalEnergies will retain the remaining 50% ownership interest while continuing to operate the assets.
Strategy Focuses on Long-Term Power Growth
The company said both agreements are consistent with its strategy of developing renewable energy projects before selling minority stakes to recycle capital into new investments.
According to TotalEnergies, acquiring Shell’s renewable assets will reinforce its position in four major deregulated European electricity markets while complementing the flexible gas-fired generation capacity provided through TTEP, its joint venture with EPH.
“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.”
Michel added that the agreement with KKR highlights the company’s ability to execute its renewable energy model “in order for Integrated Power to reach a ROACE of 12% by 2030.”
Renewable Capacity Continues to Grow
Following the acquisition, TotalEnergies’ European renewables portfolio will comprise close to 10 gigawatts of installed or under-construction capacity, supported by an additional 27 gigawatts of projects currently under development.
Globally, the company had more than 37 gigawatts of gross renewable generation capacity at the end of June 2026 and continues to target net electricity production exceeding 100 terawatt-hours by 2030.
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