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French energy company TotalEnergies has agreed to buy Shell's onshore renewable energy business in Europe while selling a 50% stake in a separate portfolio of wind and solar assets to U.S. investment firm KKR.
The acquisition from Shell covers a portfolio of around 4 gigawatts (GW), including 500 megawatts (MW) of solar and wind assets already operating or under construction, mainly in Italy and the Netherlands, as well as a 3.5 GW pipeline 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, and the transaction is expected to close by the end of 2026, subject to regulatory approvals.
Once completed, the acquisition will expand TotalEnergies' renewable portfolio, which already includes nearly 10 GW of installed or under-construction capacity and another 27 GW under development.
Shell described the sale as part of its plan to actively manage its power portfolio and focus investment on areas where it sees stronger long-term value. The company has increasingly focused on asset-backed power trading, flexible power generation and customer-facing energy solutions after laying out its updated strategy at Capital Markets Day 2025.
"This agreement reflects Shell's continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at Capital Markets Day 2025," Machteld de Haan, president of Downstream, Renewables and Energy Solutions at Shell, said.
"We are recycling capital and prioritizing areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions."
Separately, TotalEnergies signed an agreement to sell a 50% stake in a 1.2 GW portfolio of onshore wind and solar assets in Germany, Spain, France and Poland to KKR. The portfolio is valued at €1.8 billion ($2.1 billion).
The company will keep the remaining 50% stake and continue operating the assets after the deal closes. Electricity generated by the portfolio has either already been sold to third parties or will be marketed by TotalEnergies. The transaction is expected to be completed in 2026, subject to customary conditions.
"These two transactions enable us to optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy," Stephane Michel, president of Gas, Renewables & Power at TotalEnergies, said.
He said buying Shell's assets strengthens the company's position in key deregulated electricity markets across Europe, while the agreement with KKR reflects its strategy of recycling capital as it works toward a 12% return on average capital employed (ROACE) from its Integrated Power business by 2030.
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