PVTIME – TotalEnergies has entered into two landmark transactions to reshape its European renewable energy portfolio. The company has agreed an undisclosed deal to acquire Shell’s onshore renewable energy assets across Europe, while also disposing of a partial stake in its mature renewable projects to KKR.
The purchase of assets from Shell covers operational and development assets in four European countries. This includes 500MW of solar and wind facilities that are either operational or under construction in Italy, the Netherlands, Spain and the UK, as well as a 3.5GW project pipeline encompassing solar, wind and battery energy storage systems. Once the deal has been finalised, TotalEnergies’ European renewable energy capacity, including operational and under-construction assets, will total almost 10GW, with a further 27GW of projects in development.
In a concurrent divestment, the French energy firm has agreed to sell a 50% equity stake in its 1.2GW onshore solar and wind portfolio to a KKR-managed insurance account. Valued at €1.8 billion, this late-stage portfolio of assets spans Germany, Spain, France and Poland. TotalEnergies will retain the remaining 50% stake and continue to manage the assets operationally. Both transactions are scheduled for completion by the end of 2026, subject to routine regulatory and customary approvals.
TotalEnergies’ senior leadership confirms that the dual transactions support the company’s core development strategy, optimising capital deployment in renewable sectors and advancing its integrated power roadmap. The group is targeting an annual power generation output of 100TWh by 2030, consisting of 70% renewable energy and 30% flexible power generation capacity.
Company officials have highlighted that the Shell acquisition will expand the group’s renewable energy assets across Europe’s key deregulated markets. Meanwhile, the KKR divestment will unlock capital from existing assets to fund further business expansion. These moves follow the group’s disposal of its European distributed photovoltaic assets as it refocuses its resources on large-scale wind and solar projects in the region.
Shell’s divestment is part of the proactive portfolio optimisation strategy announced at the 2025 Capital Markets Day, which aims to redirect capital to high-value, long-term business segments. The company currently allocates around $8 billion each year to its downstream, renewable energy and energy solutions businesses, and a further $12–14 billion in its integrated gas and upstream operations.
Shell’s management states that the group is restructuring its capital allocation to prioritise differentiated, value-adding businesses, such as asset-backed power trading and customer-focused energy solutions. This transaction follows the full sale of Shell’s Solenergi Power stake to Aditya Birla Renewables in a $1.8 billion deal involving India’s Spring Energy project.
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