French energy major TotalEnergies has signed a deal to acquire Shell's European onshore renewable energy operations, a move that significantly expands its wind and solar footprint across the continent. The transaction, whose financial terms were not disclosed, is understood to be worth several hundred million euros, according to a source close to the deal.
The acquisition covers roughly four gigawatts of electricity production, primarily solar and wind projects that are either already operational or under construction in Italy and the Netherlands. It also includes a pipeline of solar, wind, and battery storage developments in Italy, Britain, and Spain.
In a simultaneous transaction, TotalEnergies announced it would sell a 50 percent stake in a portfolio of wind and solar assets located in Germany, Spain, France, and Poland to the US investment firm KKR. That deal values the portfolio at €1.8 billion ($2.1 billion) and represents about 1.2 gigawatts of generating capacity.
A strategic rebalancing
Stéphane Michel, TotalEnergies' president for gas, renewables, and power, framed the twin deals as part of a broader effort to optimise capital allocation. "These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy," he said in a statement.
The company's Integrated Power model aims to combine renewable generation with flexible power assets, such as battery storage, to provide reliable and low-carbon electricity. By buying Shell's European renewables business, TotalEnergies gains immediate scale in key markets like Italy and the Netherlands, while the KKR partnership provides an injection of capital that can be redeployed into new projects.
TotalEnergies said the acquisition will bolster its renewable operations in Europe, where it already has nearly 10 GW of production sites built or under construction, with a further 27 GW in development. The company has been aggressively expanding its power portfolio, targeting 100 GW of gross renewable capacity by 2030.
The deal comes at a time when European energy markets are under strain, with low river levels disrupting industry and energy and emergency measures being considered in some regions. Renewables are increasingly seen as a way to reduce dependence on fossil fuels and enhance energy security.
For Shell, the sale marks a further retreat from its earlier ambitions in European renewables. The Anglo-Dutch company has been streamlining its portfolio, focusing on higher-margin projects and divesting from less profitable ventures. Earlier this year, Shell sold its UK home energy business and has been reviewing its offshore wind commitments.
The transaction is subject to regulatory approvals and is expected to close in the coming months. Analysts note that the deal could face scrutiny from competition authorities, particularly in markets where TotalEnergies already has a strong presence.
TotalEnergies' move also reflects a broader trend of consolidation in Europe's renewable sector, as larger players seek to scale up and smaller developers struggle to finance projects. The slow adoption of innovative solar solutions in some parts of Europe highlights the challenges facing the industry.
With the acquisition, TotalEnergies strengthens its position as one of Europe's leading renewable energy producers, while the KKR deal provides a template for future partnerships with financial investors. The company said it remains committed to its goal of becoming a major player in the global energy transition.
