Shell has agreed to sell its entire European onshore renewables business to TotalEnergies, as the energy giants reshape their power portfolios and focus investment on areas offering stronger returns.
The deal covers a 4GW portfolio across Italy, the Netherlands, Spain and the UK, including 500MW of wind and solar assets already operating or under construction.
TotalEnergies will also acquire a 3.5GW development pipeline containing solar, wind and battery storage projects. The company will own the portfolio outright once the transaction completes, which is expected by the end of 2026 subject to regulatory approval.
Shell said the disposal formed part of its strategy to recycle capital and concentrate on power activities where it believes it has a competitive advantage.
These include asset-backed electricity trading, flexible generation and customer energy services rather than owning a broad portfolio of renewable developments.
Machteld de Haan, President of Downstream, Renewables and Energy Solutions at Shell, said: “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.”
For TotalEnergies, the purchase strengthens its presence in four European markets central to its Integrated Power strategy.
The company already has almost 10GW of renewable capacity operating or under construction across Europe alongside a further 27GW under development.
The acquired projects will complement its flexible gas-fired generation, particularly in Italy, the Netherlands and the UK, allowing the company to combine renewable output with dispatchable power and trading.
TotalEnergies has also agreed to sell a 50% stake in a separate 1.2GW European wind and solar portfolio to an insurance account managed by KKR.
The assets, located in Germany, Spain, France and Poland, have an enterprise value of €1.8 billion (£1.54bn).
TotalEnergies will retain the remaining 50% and continue operating the projects, with their electricity already sold to third parties or set to be marketed by the company.
The two deals show contrasting approaches to renewable ownership.
Shell is reducing direct exposure to European wind and solar development while retaining power trading and customer-facing operations.
Meanwhile, TotalEnergies is expanding its generation base but continuing to sell stakes once projects have been developed, recycling money into further growth.
Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies, said the transactions would optimise capital allocation while supporting the company’s strategy across the electricity value chain.
The Shell acquisition is expected to complete by the end of 2026.
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