TotalEnergies has agreed to buy Shell's entire onshore renewables business in Europe, a deal covering 4 GW of solar, wind and battery storage projects. In a second transaction announced at the same time, TotalEnergies is selling an insurance account managed by KKR a 50% stake in a separate 1.2 GW onshore solar and wind portfolio, for an enterprise value of €1.8 billion.

The two deals

  • Shell acquisition: 4 GW portfolio (500 MW already operating or under construction, plus a 3.5 GW pipeline), assets in Italy, the Netherlands, the UK and Spain. Expected to close by the end of 2026, pending approval from the relevant authorities.
  • KKR sale: 50% stake in a 1.2 GW portfolio already largely developed, assets in Germany, Spain, France and Poland. Enterprise value of €1.8 billion. Expected to close in 2026, subject to customary conditions.

Shell's onshore portfolio

The Shell assets TotalEnergies is buying include 500 MW of solar and wind projects already in operation or under construction, mainly in Italy and the Netherlands. The deal also brings a 3.5 GW pipeline of solar, wind and battery storage projects in Italy, the United Kingdom and Spain. TotalEnergies will wholly own the combined portfolio once the deal closes.

TotalEnergies said the purchase complements its power generation activities in those four markets, part of its Integrated Power strategy for Europe. The company's existing European renewables holdings amount to close to 10 GW of gross installed or under-construction capacity, plus another 27 GW under development.

A 50% stake for KKR

Separately, TotalEnergies signed an agreement with an insurance account managed by KKR to sell half of a 1.2 GW onshore solar and wind portfolio that is already largely built out. The assets sit in Germany, Spain, France and Poland. TotalEnergies will keep the other 50% and continue to operate the assets once the sale closes. The power these assets generate is already under contract to outside buyers, or will be marketed by TotalEnergies itself.

TotalEnergies described the KKR sale as part of a farm-down business model it repeats on a regular basis: developing a renewables project, then selling part of the stake once it is largely built, while keeping a role running it.

Executive comment

Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies, said the two deals "optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy." He said the Shell purchase strengthens TotalEnergies' position in selected deregulated markets and complements the gas-fired capacity of TTEP, its joint venture with EPH, particularly in Italy, the Netherlands and the United Kingdom. Michel said the KKR deal also counts toward TotalEnergies' goal for its Integrated Power business to reach a return on average capital employed of 12% by 2030.