TotalEnergies announced a two-part transaction to broaden its European power generation footprint and to redeploy capital within its renewables division. The company will acquire Shell’s entire onshore renewables business in Europe and, in a separate agreement, sell half of a separate 1.2 gigawatt solar and wind portfolio to an insurance account managed by KKR.
Under the acquisition, TotalEnergies will take ownership of roughly 500 megawatts of solar and wind assets that are either in operation or under construction, concentrated mainly in Italy and the Netherlands. The purchase also includes a 3.5 gigawatt pipeline of projects across Italy, the United Kingdom and Spain. Once the transaction closes, the acquired portfolio will be fully owned by TotalEnergies. The company expects completion by the end of 2026, subject to regulatory approval.
Separately, TotalEnergies has entered into an agreement to sell a 50% stake in a 1.2 GW onshore solar and wind asset portfolio to an insurance account overseen by KKR. The portfolio, which spans assets located in Germany, Spain, France and Poland, carries an enterprise value of 1.8 billion. Electricity produced from these assets is already contracted to third parties or will continue to be marketed by TotalEnergies following the transaction.
TotalEnergies will retain the remaining 50% ownership of the KKR-partnered portfolio and will remain the operator of the assets after the deal closes. The company anticipates the sale to be finalized in 2026 and noted that customary closing conditions apply.
Company rationale and strategic fit
Executives said the deals are consistent with a capital-recycling approach in the power division, where developed renewable assets are commonly monetized through the sale of minority stakes. Management described the acquisition of Shell’s onshore renewables business as reinforcing TotalEnergies’ position in selected deregulated European markets and as complementary to the flexible generation provided by the gas-fired plants of TTEP, TotalEnergies' joint venture with EPH.
St phane Michel, President, Gas, Renewables & Power at TotalEnergies, framed the transactions as a way to optimize capital allocation in renewables while continuing deployment of the company’s Integrated Power strategy. He added that the KKR agreement supports the execution of the renewables business model and the company's objective for Integrated Power to reach a return on average capital employed - ROACE - of 12% by 2030.
Scale of TotalEnergies' renewables platform
The company said its European renewables portfolio comprises nearly 10 gigawatts of gross installed capacity or capacity under construction, with an additional 27 gigawatts under development. Globally, as of the end of June 2026, TotalEnergies reported holding more than 37 gigawatts of gross renewable power generation capacity and is targeting over 100 terawatt-hours of net electricity production by 2030.
These transactions are structured to preserve operational control for TotalEnergies in the assets it continues to operate, while also creating liquidity through partial disposals that align with its stated Integrated Power business model.
What to watch next
Key upcoming milestones include regulatory approvals for the Shell acquisition and the completion of customary conditions for the KKR stake sale, both anticipated in 2026. The timing and satisfaction of those conditions will determine the finalization of ownership changes and any subsequent accounting or operational integration steps.