TotalEnergies acquires Shell renewables to fuel integrated power strategy

TotalEnergies has signed an agreement with Shell to acquire its entire onshore renewables business in Europe. The deal includes 500MW of solar and wind assets in operation or under construction, which are mainly located in Italy and the Netherlands, in addition to a 3.5GW pipeline of solar, wind and battery storage projects in Italy, the UK and Spain.

TotalEnergies will also sell a 50% stake in an already largely developed 1.2GW onshore solar and wind asset portfolio to KKR for €1.8 billion (US$2 billion).

Transactions are expected to be completed by the end of 2026 and remain subject to approval by relevant authorities. It added that these movements are in line with its Integrated Power strategy in Europe, which is focused on selected deregulated markets – as demonstrated by its recent joint venture with Czech energy group EPH – and with its business model designed to optimise capital allocation in renewables.

“These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy. The acquisition of Shell’s onshore renewables assets in Europe strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain, complementing the flexible generation capacity of the gas-fired power plants of TTEP, our joint venture with EPH, particularly in Italy, the Netherlands and the United Kingdom,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.

“In addition, with this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE of 12% by 2030,” he added.

This most recent transaction complements TotalEnergies’ power generation activities in these four key markets so it can deploy its Integrated Power strategy. Its European renewables asset portfolio amounts to nearly 10GW of gross installed capacity or capacity under construction, in addition to 27GW under development.

TotalEnergies has been making significant moves in the renewable energy space in recent months. At the start of this year, it penned two new long-term power purchase agreements with Google to deliver 1GW of solar capacity for Google’s data centres in Texas. The company has been looking for ways to expand its power business in deregulated markets where price volatility can create strong trading opportunities.

As of February 2026, the company had a gross capacity portfolio of 10GW of onshore solar, wind and battery storage assets in operation across the US. This includes 400MW in the PJM market and 5GW in the ERCOT market.

These movements come as the wider digital infrastructure sector is looking to decarbonise, with data centre operators in particular considering battery storage as a way to rely less on the grid and offer uninterrupted power quality and lower costs.

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