PARIS: In a significant development for the European energy sector, TotalEnergies has announced two major transactions that underscore its commitment to its Integrated Power strategy while demonstrating its ability to optimize capital allocation in the renewables space.
Strategic Acquisition from Shell
The French energy giant has signed an agreement with Shell to acquire its entire onshore renewables business in Europe. The portfolio includes 500 MW of solar and wind assets that are either operational or currently under construction, primarily located in Italy and the Netherlands. Perhaps more significantly, the deal also encompasses a substantial 3.5 GW pipeline of solar, wind, and battery storage projects spanning Italy, the United Kingdom, and Spain.
This acquisition, which is expected to close by the end of 2026 pending regulatory approvals, will be wholly owned by TotalEnergies upon completion. The move strategically complements the company’s existing power generation activities in these four key markets, which are central to its European Integrated Power deployment.
With this addition, TotalEnergies’ European renewables asset portfolio now stands at nearly 10 GW of gross installed capacity or capacity under construction, with an additional 27 GW in various stages of development.
Partial Farm-Down to KKR
In a parallel transaction demonstrating its renewables business model in action, TotalEnergies has agreed to sell a 50% stake in a 1.2 GW onshore solar and wind asset portfolio to an insurance account managed by KKR, a leading global investment firm.
The portfolio, valued at an enterprise value of €1.8 billion, includes assets across Germany, Spain, France, and Poland. The electricity generated by these assets is either already sold to third parties or will be marketed by TotalEnergies, which will retain a 50% stake and continue operating the facilities following the transaction’s expected completion in 2026.
Executive Commentary
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, commented on the dual transactions: “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. 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.”
Michel highlighted the strategic complementarity with the company’s recent joint venture with EPH, particularly in Italy, the Netherlands, and the United Kingdom. “With this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE of 12% by 2030.”
Building a Competitive Portfolio
TotalEnergies is actively constructing a competitive electricity portfolio that combines renewable sources—including solar, onshore wind, and offshore wind—with flexible assets such as combined-cycle gas turbines and storage solutions to deliver clean firm power to customers. As of the end of June 2026, the company holds more than 37 GW of gross renewable power generation capacity and aims to achieve over 100 TWh of net electricity production by 2030.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets diverse energy sources, including oil and biofuels, natural gas, biogas and low-carbon hydrogen, alongside renewables and electricity. With more than 100,000 employees operating in approximately 120 countries, the company places sustainability at the core of its strategy, projects, and operations, working to provide energy that is more reliable, affordable, and sustainable for as many people as possible.
