TotalEnergies has agreed to buy Shell's entire onshore renewables business in Europe, adding a 4GW portfolio of solar, wind and battery storage assets. The French energy major is simultaneously selling a 50% stake in a separate 1.2GW onshore portfolio to an insurance account managed by KKR for €1.8 billion. The Shell acquisition is expected to close by the end of 2026, while the KKR stake sale is expected to complete during 2026.
TotalEnergies has signed an agreement to acquire Shell's entire onshore renewables business in Europe, picking up 500MW of solar and wind assets already operating or under construction, mainly in Italy and the Netherlands. The deal also hands TotalEnergies a 3.5GW pipeline of solar, wind and battery storage projects in Italy, the United Kingdom and Spain.
A 4GW addition to TotalEnergies' European book
Together, the operating assets and the pipeline give TotalEnergies a 4GW renewables portfolio, which the company says complements its power generation activities across four key European countries. TotalEnergies expects the transaction to complete by the end of 2026, subject to approval by the relevant authorities, after which the portfolio will be wholly owned by the company.
The purchase builds on a European renewables base that already stands at nearly 10GW of gross installed or under-construction capacity, plus 27GW under development.
KKR takes half of a €1.8 billion portfolio
TotalEnergies also signed a separate agreement with an insurance account managed by KKR to sell a 50% stake in a 1.2GW onshore solar and wind portfolio spanning Germany, Spain, France and Poland, at an enterprise value of €1.8 billion. TotalEnergies will keep the other 50% and continue operating the assets after the deal closes.
The electricity generated by the portfolio is already sold to third parties or will be marketed by TotalEnergies. This transaction, too, is expected to complete in 2026, subject to customary conditions.
According to reNEWS: Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said the two deals let the company "optimize our capital allocation in renewables" while pursuing its Integrated Power strategy. Michel also tied the KKR sale to a target of 12% return on average capital employed by 2030.
Source: reNEWS
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