TotalEnergies Expands European Renewable Portfolio with Acquisition of Shell’s Onshore Assets

French energy major TotalEnergies SE has reached an agreement to acquire Shell plc’s European onshore renewable energy business, marking another significant move in the ongoing consolidation of Europe’s renewable energy market. The transaction will further strengthen TotalEnergies’ renewable power portfolio across key European markets and support the company’s broader Integrated Power strategy.

Under the agreement, TotalEnergies will acquire a renewable energy portfolio with a total capacity of approximately 4 GW, consisting of operating assets, projects currently under construction, and a large-scale development pipeline covering solar, onshore wind, and battery energy storage projects.

The acquired portfolio includes around 500 MW of operational and under-construction solar and wind assets, primarily located in Italy and the Netherlands, as well as an additional 3.5 GW pipeline of future renewable projects across Italy, the United Kingdom, and Spain. The financial terms of the transaction were not disclosed.

The acquisition is expected to further enhance TotalEnergies’ position in Europe’s renewable energy sector by expanding its presence in several strategic markets. The company stated that the transaction complements its existing power generation activities in these four key European markets and aligns with its long-term strategy of developing an integrated electricity business combining renewable generation, energy storage, and power market solutions.

In parallel with the acquisition of Shell’s renewable assets, TotalEnergies has also entered into a separate agreement with global investment firm KKR to optimize its renewable energy portfolio. The company will sell a 50% stake in a 1.2 GW portfolio of European onshore solar and wind assets, in a transaction representing an enterprise value of approximately EUR 1.8 billion (USD 2.07 billion).

The portfolio involved in the KKR transaction is largely developed and includes renewable energy assets located in Germany, Spain, France, and Poland. Electricity generated from these projects has already been contracted with third parties or will continue to be marketed through TotalEnergies. Following completion of the transaction, which is expected in 2026, TotalEnergies will retain a 50% ownership stake and continue operating the assets.

According to Stephane Michel, President of Gas, Renewables & Power at TotalEnergies, the two transactions are consistent with the company’s strategy of optimizing capital allocation in renewable energy while continuing to expand its Integrated Power business. The deals are expected to provide greater flexibility in investment management while supporting the company’s long-term growth ambitions in the global energy transition.

TotalEnergies continues to accelerate its renewable energy expansion, with the company reporting more than 37 GW of gross renewable power generation capacity at the end of June. The company has also set a target of achieving more than 100 TWh of net electricity production by 2030, highlighting its commitment to becoming a major player in the global power market.

For Shell, the divestment represents a strategic step to recycle capital and focus investment on areas aligned with its asset-backed trading strategy. The company said the agreement reflects its continued efforts to actively manage and optimize its power portfolio, prioritizing areas where it can leverage its competitive advantages and create long-term value, including asset-backed power trading and customer-focused energy solutions.

The transaction highlights the continued restructuring of Europe’s renewable energy sector, as major energy companies increasingly adjust their portfolios through acquisitions, partnerships, and asset optimization strategies. By combining renewable generation assets with investment partnerships and energy market capabilities, companies such as TotalEnergies and Shell are seeking to improve capital efficiency while adapting to the evolving energy transition landscape.