PARIS — TotalEnergies has agreed to acquire Shell's European onshore renewables business, expanding the French energy group's renewable electricity portfolio while advancing Shell's strategy of reducing direct ownership of renewable generation assets in favor of higher-return businesses.
The transaction, announced by the companies this week, includes about 500 megawatts of operating or under-construction solar and wind assets as well as a development pipeline of roughly 3.5 gigawatts of solar, wind and battery storage projects across Italy, the United Kingdom and Spain. The companies did not disclose the financial terms of the deal.
The acquisition is expected to close by the end of 2026, subject to customary regulatory approvals and other closing conditions, according to the companies.
The sale marks another step in Shell's reshaping of its power business under Chief Executive Wael Sawan, who has shifted the company toward investments aimed at strengthening its oil and gas operations while emphasizing businesses tied to power trading, flexible generation and stronger financial returns.
For TotalEnergies, the purchase supports Chief Executive Patrick Pouyanné's strategy of building an integrated electricity business by expanding renewable generation alongside gas-fired power and energy trading operations. The company said the assets complement its existing activities in key European electricity markets.
Separately, TotalEnergies announced that investment firm KKR will acquire a 50% interest in a 1.2-gigawatt portfolio of the company's onshore solar and wind assets in Germany, Spain, France and Poland. TotalEnergies said the transaction reflects its long-standing approach of bringing in partners after renewable projects reach maturity while retaining a significant ownership stake.
Following completion of the Shell acquisition, TotalEnergies said it will add the newly acquired portfolio to a renewable business that already includes about 10 gigawatts of installed or under-construction renewable generation capacity and around 27 gigawatts of projects under development.
Shell has been streamlining its renewables portfolio in several markets as part of a broader review of its power business. The company has said it intends to concentrate capital on areas where it believes it can generate higher shareholder returns while maintaining a presence in selected low-carbon energy businesses.
Both companies said they will proceed with the necessary regulatory processes before completing the transaction, which remains subject to customary approvals.
