TotalEnergies has announced two major transactions in a reshuffle of its European green energy portfolio, acquiring Shell’s onshore renewables business across Europe while selling a 50 per cent stake in a separate asset portfolio to global investment firm KKR.
Under the agreement with Shell, the French energy giant will take full ownership of a four-gigawatt (GW) portfolio. The deal includes 500 megawatts (MW) of operational or under-construction solar and wind assets located primarily in Italy and the Netherlands, alongside a 3.5 GW development pipeline of solar, wind, and battery storage projects spanning Italy, the United Kingdom, and Spain.
The acquisition reinforces TotalEnergies’ power generation footprint in key deregulated markets, expanding its broader European renewables pipeline, which currently stands at nearly 10 GW of capacity installed or under construction, alongside 27 GW in development.
Simultaneously, TotalEnergies signed an agreement with an insurance account managed by KKR to sell a 50 per cent stake in a 1.2 GW onshore solar and wind portfolio across Germany, Spain, France, and Poland.
Valued at an enterprise value of €1.8 billion (AU$2.95 billion), the transaction aligns with TotalEnergies’ standard business model of partial farm-downs to optimise capital allocation while retaining operational control.
“These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.
He added that the deals support the company’s target to achieve a 12 per cent return on average capital employed (ROACE) in its Integrated Power division by 2030.
Vincent Policard, Co-Head of European Infrastructure at KKR, noted that the investment reflects strong conviction in the long-term fundamentals supporting Europe’s renewable energy sector and infrastructure transition.
TotalEnergies will retain a 50 per cent stake in the assets and continue to operate them after completion of the transaction.
Both transactions are expected to complete by the end of 2026, subject to regulatory approvals and customary closing conditions.