TotalEnergies Expands European Renewables Portfolio with Shell Acquisition and KKR Partnership
TotalEnergies has announced two major transactions that strengthen its position in the European renewable energy market while reinforcing its long-term Integrated Power strategy. The company has signed an agreement to acquire Shell’s onshore renewables business in Europe and has also agreed to sell a 50% stake in a mature renewable energy portfolio to global investment firm KKR. Together, the deals reflect TotalEnergies’ approach of expanding its clean energy footprint in strategic European markets while optimizing capital allocation through selective asset partnerships.
The combined transactions are designed to accelerate the company’s renewable energy growth, improve returns on investment, and support the broader transition toward low-carbon electricity across Europe. By adding new renewable generation assets and development projects while recycling capital from operational assets, TotalEnergies continues to balance expansion with financial discipline.
Acquisition of Shell’s European Onshore Renewables Business
As part of the first transaction, TotalEnergies has entered into an agreement with Shell to acquire Shell’s entire onshore renewables business in Europe. The acquisition includes approximately 4 gigawatts (GW) of renewable energy capacity consisting of both operational projects and an extensive development pipeline.
The portfolio features around 500 megawatts (MW) of solar and wind projects that are either already producing electricity or are currently under construction. These operating assets are primarily located in Italy and the Netherlands, two markets that remain central to TotalEnergies’ European Integrated Power strategy.
In addition to the operating assets, the acquisition also includes a substantial pipeline totaling approximately 3.5 GW of renewable energy developments. These projects span solar power, onshore wind generation, and battery energy storage systems across several major European markets, including Italy, Spain, and the United Kingdom.
Upon completion of the transaction, TotalEnergies will assume full ownership of the acquired business and its associated renewable assets. The deal is expected to close by the end of 2026, subject to customary regulatory approvals and other required conditions.
Strengthening Presence in Key European Markets
The acquisition significantly strengthens TotalEnergies’ renewable energy platform across selected deregulated electricity markets in Europe. The company has consistently identified countries such as Italy, the Netherlands, Spain, and the United Kingdom as priority markets due to their favorable regulatory environments, growing renewable electricity demand, and opportunities for integrated energy solutions.
These markets are central to the company’s Integrated Power strategy, which combines renewable electricity generation, flexible power production, energy trading, battery storage, and customer electricity supply into a unified business model.
By expanding its presence in these countries, TotalEnergies expects to improve its ability to optimize electricity production and marketing while creating additional opportunities for long-term value creation.
Following the acquisition, the company’s European renewable energy portfolio will reach nearly 10 GW of installed capacity or projects currently under construction. Additionally, TotalEnergies will have approximately 27 GW of renewable projects under development throughout Europe, significantly enhancing its future growth pipeline.
Integrated Power Strategy Continues to Expand
The Shell acquisition aligns closely with TotalEnergies’ broader transformation into an integrated energy company. Rather than focusing solely on electricity generation, the company is investing across the entire electricity value chain.
Its Integrated Power strategy combines renewable generation with flexible gas-fired power plants, battery storage systems, electricity trading, and customer supply businesses. This integrated model enables the company to optimize electricity production based on market conditions while improving overall profitability.
The approach also allows TotalEnergies to better manage fluctuations associated with renewable energy generation, using flexible assets and energy trading capabilities to balance supply and demand.
The company believes this integrated business model will play an increasingly important role as Europe continues to expand renewable electricity generation while maintaining grid stability.
Sale of 50% Stake in Renewable Portfolio to KKR
Alongside the acquisition from Shell, TotalEnergies has also announced a separate transaction involving the partial sale of an existing renewable energy portfolio.
The company has signed an agreement with an insurance account managed by KKR, one of the world’s leading global investment firms, to sell a 50% ownership interest in a portfolio of mature renewable energy assets across Europe.
The portfolio consists of approximately 1.2 GW of onshore wind and solar projects with a combined enterprise value of approximately €1.8 billion.
The assets included in the transaction are located across Germany, Spain, France, and Poland, representing some of Europe’s largest renewable electricity markets.
Unlike a complete divestment, TotalEnergies will retain the remaining 50% ownership stake in the portfolio. The company will also continue serving as operator of the renewable assets following completion of the transaction, maintaining responsibility for their day-to-day management and long-term operational performance.
The sale is expected to close during 2026, subject to customary closing conditions and regulatory approvals.
Capital Recycling Supports Growth
The agreement with KKR highlights TotalEnergies’ capital recycling strategy, which has become a defining feature of its renewable energy investment model.
Instead of fully owning every renewable project throughout its operational life, the company develops or acquires assets, advances them to commercial operation, and then selectively sells minority stakes to long-term financial investors.
This approach allows TotalEnergies to recover capital that can be reinvested into new renewable developments while still maintaining operational control and long-term revenue generation.
The strategy enables the company to accelerate renewable capacity growth without placing excessive pressure on its balance sheet.
Over recent years, TotalEnergies has repeatedly completed similar farm-down transactions, demonstrating consistent execution of this investment model across multiple renewable energy portfolios.
Long-Term Partnership with Institutional Investors
Institutional investors such as KKR continue to demonstrate strong interest in mature renewable infrastructure assets due to their stable cash flows and long-term investment characteristics.
For TotalEnergies, partnerships with financial investors provide access to additional sources of capital while allowing the company to remain involved in asset operations and electricity marketing.
Electricity generated by the renewable portfolio included in the KKR transaction has already been contracted with third-party buyers or will continue to be marketed through TotalEnergies’ own electricity trading operations.
This arrangement ensures continuity for customers while supporting the company’s integrated commercial strategy.
Supporting Europe’s Energy Transition
Both transactions reflect the continued growth of Europe’s renewable energy sector as governments, utilities, and private companies invest heavily in low-carbon electricity generation.
Solar power, onshore wind, and battery storage remain among the fastest-growing segments of Europe’s energy infrastructure, supported by climate targets, energy security objectives, and increasing electricity demand driven by electrification.
By expanding its renewable generation capacity while strengthening its electricity value chain, TotalEnergies is positioning itself to play a larger role in supplying clean electricity to residential, commercial, and industrial customers across Europe.
The acquisition of Shell’s renewable business also demonstrates ongoing consolidation within the renewable energy industry as major energy companies reshape their portfolios to focus on strategic markets and long-term growth opportunities.
Executive Perspective
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said the two transactions support the company’s strategy of optimizing capital allocation while continuing to expand its Integrated Power business across Europe.
He explained that acquiring Shell’s onshore renewable assets strengthens TotalEnergies’ power generation capabilities in key deregulated European markets and complements the flexible gas-fired generation capacity operated through TTEP, the company’s joint venture with EPH. According to Michel, this combination enhances TotalEnergies’ ability to manage electricity production across the value chain, particularly in Italy, the Netherlands, and the United Kingdom.
Regarding the KKR agreement, Michel noted that the transaction once again demonstrates TotalEnergies’ ability to successfully execute its renewable investment model by selectively selling minority interests in mature assets while maintaining operational control. He added that this disciplined approach supports the company’s objective of achieving a 12% Return on Average Capital Employed (ROACE) for its Integrated Power business by 2030.
Positioning for Future Growth
With these two complementary transactions, TotalEnergies continues to execute its strategy of expanding renewable electricity generation while maintaining financial flexibility. The acquisition from Shell significantly enlarges the company’s development pipeline and operating asset base, while the partnership with KKR unlocks capital for future investments without reducing operational involvement.
As Europe accelerates its energy transition, TotalEnergies is strengthening its presence in major deregulated electricity markets and building an increasingly diversified renewable energy portfolio. By combining renewable generation, flexible power assets, energy trading, and strategic financial partnerships, the company aims to deliver long-term growth while supporting Europe’s transition toward a cleaner and more resilient energy system.
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