TotalEnergies Acquires Shell's European Onshore Renewables, Sells Portfolio Stake to KKR

TotalEnergies announced a pair of strategic transactions on Monday, acquiring Shell's entire European onshore renewables business while simultaneously selling a 50% stake in a separate portfolio of wind and solar assets to investment firm KKR. The moves are part of the French energy major's capital-recycling strategy to optimize its power division and expand its European footprint.

Dual Transactions Reshape Portfolio

The first deal involves TotalEnergies purchasing all of Shell's onshore renewable assets in Europe. According to the company's statement, this acquisition includes:

• 500 megawatts (MW) of solar and wind assets already in operation or under construction, primarily in Italy and the Netherlands.
• A development pipeline of 3.5 gigawatts (GW) of solar, wind, and battery storage projects across Italy, the United Kingdom, and Spain.

Separately, TotalEnergies has agreed to sell a 50% interest in a 1.2 GW portfolio of its own onshore renewable assets to an insurance account managed by KKR. This portfolio, spanning assets in Germany, Spain, France, and Poland, carries an enterprise value of €1.8 billion. TotalEnergies will retain the remaining 50% stake and continue to operate the assets.

Strategic Rationale and Financial Targets

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These transactions align with TotalEnergies' established business model of developing renewable projects and subsequently selling 50% stakes to institutional investors. Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, stated that the deals "optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy."

The company noted that the assets acquired from Shell will complement its flexible gas-fired power plants, particularly through its TTEP joint venture in Italy, the Netherlands, and the UK. The KKR partnership demonstrates the company's ability to monetize developed assets, a key component in its goal to achieve a 12% Return on Average Capital Employed (ROACE) for its Integrated Power division by 2030.

Context and European Expansion

Both transactions, expected to close by the end of 2026 subject to regulatory approvals, significantly bolster TotalEnergies' position in key European electricity markets. Following these deals, the company's European renewables portfolio will comprise nearly 10 GW of gross installed capacity or capacity under construction, with an additional 27 GW under development.

As of the end of June 2026, TotalEnergies reported a global gross renewable power generation capacity of more than 37 GW. The company is targeting net electricity production of more than 100 terawatt-hours by 2030 as it continues its strategic shift toward integrated power and renewables.