TotalEnergies has announced two major transactions in Europe as part of its Integrated Power strategy, aimed at strengthening its renewable energy position in selected deregulated markets while optimising capital allocation.

The company has signed an agreement to acquire Shell’s entire onshore renewables business in Europe, comprising a 4 GW portfolio of solar, wind and battery storage projects.

The acquisition includes 500 MW of operational or under-construction solar and wind assets, mainly located in Italy and the Netherlands, along with a 3.5 GW development pipeline across Italy, the United Kingdom and Spain.

Following completion, expected by the end of 2026 and subject to regulatory approvals, the portfolio will be fully owned by TotalEnergies.

The acquisition will support the company’s renewable expansion across key European markets, adding to its existing portfolio of nearly 10 GW of gross installed capacity or projects under construction, alongside 27 GW under development.

In a separate transaction, TotalEnergies has agreed to sell a 50 per cent stake in a 1.2 GW portfolio of largely developed onshore solar and wind assets to an insurance account managed by KKR, a global investment firm.

The portfolio, valued at an enterprise value of €1.8 billion ($2 billion), includes assets across Germany, Spain, France and Poland.

TotalEnergies will retain ownership of the remaining 50 per cent stake and continue operating the assets after completion, expected in 2026.

The electricity generated from the portfolio is already sold to third parties or will be marketed by TotalEnergies.

The transactions reflect TotalEnergies’ strategy of expanding renewable capacity while maintaining financial flexibility through selective partnerships and asset optimisation.

“In line with our strategy, these two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy. The acquisition of Shell's onshore renewables assets in Europe strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain, complementing the flexible generation capacity of the gas-fired power plants of TTEP, our joint venture with EPH, particularly in Italy, the Netherlands and the United Kingdom,” said Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies. “In addition, with this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE of 12 per cent by 2030.” -OGN/TradeArabia News Service