TotalEnergies accelerated its renewable energy expansion in Europe through two transactions totaling 5.2 GW . The company agreed to acquire a 4 GW onshore portfolio from Shell and, in parallel, sell a 50% stake in a 1.2 GW solar and wind farm portfolio valued at €1.8 billion to KKR.
The purchase from Shell comprises 500 MW of assets in operation or under construction , located mainly in Italy and the Netherlands, in addition to 3.5 GW of solar, wind and battery storage projects at various stages of development in Italy, the United Kingdom and Spain.
Once the transaction is completed, TotalEnergies will own 100% of the acquired business. Closing is expected by the end of 2026 and remains subject to regulatory approvals.
The acquisition will strengthen the company's presence in four European markets considered priorities for its Integrated Power strategy. TotalEnergies already has nearly 10 GW of renewable energy installed or under construction on the continent and another 27 GW in development .
At the same time, the company agreed with an insurer managed by KKR to sell 50% of a 1.2 GW portfolio located in Germany, Spain, France and Poland.
TotalEnergies will retain the remaining stake and continue operating the assets. The energy produced is already contracted with third parties or will be marketed directly by the company.
The structure reflects a capital rotation model that TotalEnergies applies once projects reach an advanced stage of development. Instead of selling the plants outright, it brings in financial partners, monetizes part of the investment, and retains exposure to future generation and revenue.
With this strategy, the company seeks to free up resources to finance new projects without proportionally increasing its capital requirements. The goal is to accelerate renewable energy expansion while maintaining operational control over mature assets.
The transaction with KKR values the portfolio at €1.8 billion . Its closing is also expected during 2026, subject to customary closing conditions.
“These two transactions allow us to optimize capital allocation in renewable energy, while continuing to implement our Integrated Power strategy,” said Stéphane Michel, President of Gas, Renewables and Electricity at TotalEnergies.
The executive explained that the acquisition of Shell's assets will complement the flexible generation capacity that the company is incorporating through its alliance with EPH, especially in Italy, the Netherlands and the United Kingdom.
The strategy combines renewable energy plants with assets capable of responding when solar or wind power production declines. The goal is to participate in the entire electricity value chain, from generation to trading and flexibility management.
Buy projects, develop them and recover capital
The double move shows how TotalEnergies seeks to gain scale without permanently maintaining full ownership of all the assets it develops.
The acquisition of Shell's portfolio expands its pipeline in markets where it already has commercial operations, generation, and energy management capabilities. The transaction also incorporates BESS projects, a technology that is gaining importance due to the growth of variable generation and the volatility of electricity prices.
The partial sale to KKR follows a different logic. The assets included are mostly developed and have contracted energy or access to TotalEnergies' commercial platform, which reduces their risk compared to projects in early stages.
This profile makes them attractive investments for funds and insurers interested in long-term revenue-generating infrastructure. For TotalEnergies, the entry of a partner allows them to recover some of the capital invested and allocate it to new opportunities.
The company will retain 50% of the portfolio and will continue to operate it, so it will continue to receive part of the income and maintain its operational activity.
The scheme aims to improve the return on capital employed of the Integrated Power business. TotalEnergies has set a target of achieving a ROACE of 12% by 2030 , supported by growth in generation, electricity trading, and the periodic rotation of investment holdings.
The deal with Shell also represents a shift in the corporate landscape of European renewables. While the British oil company reallocates capital and reduces its exposure to certain onshore projects, TotalEnergies seizes the opportunity to rapidly expand its platform without waiting to develop all the capacity from scratch.
The 500 MW that are operational or under construction will provide generation in the short term, while the remaining 3.5 GW will feed the portfolio for the coming years.