• TotalEnergies will acquire 500 MW of operating and construction-stage assets, alongside a 3.5 GW development pipeline.
• Shell is redirecting capital toward flexible generation, power trading and customer-focused energy solutions.
• TotalEnergies plans to sell KKR a 50% stake in selected developed assets, supporting its capital recycling model.

Shell has agreed to sell its European onshore renewables portfolio to TotalEnergies as the energy group continues to reduce its direct exposure to renewable generation assets.

The portfolio spans Italy, the Netherlands, Spain and the UK. It includes solar, wind and battery storage projects at different stages of development.

The transaction remains subject to regulatory approval and is expected to close by the end of 2026. Financial terms were not disclosed.

TotalEnergies expands its European power portfolio

TotalEnergies will acquire 500 MW of solar and wind assets that are either operational or under construction. Most of this capacity is located in Italy and the Netherlands.

The deal also covers a 3.5 GW development pipeline. These projects include solar, wind and battery storage assets across Italy, Spain and the UK.

The acquisition will strengthen TotalEnergies’ power generation presence in four major European markets. It also supports the company’s broader Integrated Power strategy, which combines renewable generation, flexible capacity, trading and customer supply.

TotalEnergies will separately sell KKR a 50% interest in a portfolio of developed renewable assets. The company regularly sells minority stakes once projects reach a more mature stage.

The model allows TotalEnergies to recover part of its invested capital while retaining operational exposure to the assets.

Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies, said: “In line with our strategy, these two transactions enable us to optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy.”

Shell accelerates renewable asset sales

For Shell, the transaction extends a wider programme of renewable energy divestments.

The company recently agreed to sell its India-based renewable energy platform, Sprng, to Aditya Birla Renewables. Sprng accounted for approximately four-fifths of Shell’s renewable energy capacity, which stood at 6.1 GW at the end of 2025.

The European sale reflects Shell’s plan to focus its Power business on areas where it believes it holds stronger commercial advantages.

Those areas include asset-backed power trading, flexible generation and customer-focused energy services. Shell is also seeking to improve returns across the business.

RELATED ARTICLE: Shell Sells Sprng Energy to Aditya Birla for $1.8B

Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell, said: “This agreement reflects Shell’s continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at Capital Markets Day 2025. We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions.”

Shell’s strategy, announced in March 2025, targets a rebalancing of the company’s power portfolio toward flexible generation. The group aims to improve business performance and achieve around a 10% return on average capital employed by 2030.

Capital discipline reshapes renewable ownership

The deal reflects a broader shift in how large energy companies manage renewable assets.

Rather than retaining full ownership throughout a project’s operating life, companies are increasingly using partnerships, minority stake sales and portfolio disposals to manage capital requirements.

For Shell, the sale reduces capital tied up in renewable development and generation. It also concentrates resources in trading and customer businesses that may offer higher margins.

For TotalEnergies, the acquisition adds a substantial development pipeline without requiring permanent ownership of every asset. The planned KKR transaction will help share future funding obligations and project risk.

European renewable investment continues to depend on permitting, grid access, financing costs and stable policy frameworks. Developers with access to capital and integrated power capabilities may be better placed to absorb those risks.

The transaction also shows that renewable asset sales do not necessarily indicate a retreat from clean power. Instead, ownership is moving toward companies and investors whose strategies are built around large-scale project development, infrastructure partnerships and capital recycling.

As European power markets expand renewable capacity and storage, these portfolio shifts will influence who finances, develops and ultimately controls the region’s next generation of energy infrastructure.