TotalEnergies Expands Renewable Energy Portfolio with Shell Europe Dea

TotalEnergies has announced an agreement to acquire Shell’s entire onshore renewable energy business in Europe, strengthening its position in the continent’s growing clean energy market.

The acquisition includes 500 megawatts (MW) of solar and wind assets that are either already operational or currently under construction.

The portfolio, located mainly in Italy and the Netherlands, also includes a 3.5-gigawatt (GW) development pipeline comprising solar, wind and battery storage projects across Italy, the United Kingdom and Spain.

According to TotalEnergies, the transaction is expected to be completed by the end of 2026, subject to regulatory approvals.

Once finalized, the assets will become part of the company’s Integrated Power strategy, expanding its renewable energy footprint in four key European markets.

The company noted that the acquisition will increase its European renewable energy portfolio, which currently includes nearly 10 GW of installed or under-construction capacity and 27 GW of projects under development.

In a separate transaction, TotalEnergies also announced the sale of a 50 percent stake in a 1.2 GW portfolio of onshore solar and wind assets in Europe to an insurance account managed by global investment firm KKR.

The renewable energy portfolio, valued at approximately €1.8 billion, includes projects located in Germany, Spain, France and Poland.

Despite the sale, TotalEnergies will retain the remaining 50 percent ownership and continue operating the assets after the transaction is completed, which is also expected in 2026, subject to customary approvals.

Commenting on both agreements, Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies, said the transactions align with the company’s long-term strategy of optimizing capital allocation while accelerating the growth of its renewable energy business.

He explained that acquiring Shell’s renewable assets strengthens TotalEnergies’ electricity generation capacity in key deregulated European markets and complements its existing gas-fired power operations through its joint venture with EPH.

Michel added that the partnership with KKR further demonstrates the company’s ability to recycle capital efficiently while targeting a 12 percent Return on Average Capital Employed (ROACE) for its Integrated Power business by 2030.