TotalEnergies rejigs renewables portfolio with Shell and KKR deals
TotalEnergies SE on Monday said it is buying Shell PLC's European onshore renewables portfolio, as well as selling a 50% stake in a developed renewables asset portfolio to private equity firm Kohlberg Kravis Roberts & Co.
Paris-based TotalEnergies said the deal with Shell covers its London-based peer's entire onshore renewables business in Europe.
This includes 500 megawatt of solar and wind assets in operation or under construction, mainly located in Italy and the Netherlands, and 3.5 gigawatt pipeline of solar, wind and battery storage projects in Italy, the UK and Spain.
TotalEnergies said the deal, which is expected to complete by the end of 2026, complements its power generation activities in the four markets.
For its part, Shell said the agreement is in line with the strategy set out at capital markets day in 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," said Machteld de Haan, president, Downstream, Renewables & Energy Solutions at Shell.
No financial details of the transaction were announced.
In addition, TotalEnergies said it has sold a 50% stake in an already largely developed 1.2 GW renewables asset portfolio for an enterprise value of EUR1.8 billion to New York-based KKR.
The transaction covers a portfolio of assets in Germany, Spain, France and Poland. TotalEnergies will retain a 50% stake in the assets and continue to operate them after completion of the stake sale, which is expected in 2026.
"These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy," said Stephane Michel, president, Gas, Renewables & Power at TotalEnergies.
TotalEnergies is building a portfolio that combines renewables and flexible assets to deliver clean firm power to its customers. By the end of June 2026, TotalEnergies held more than 37 GW of gross renewable power generation capacity and aims to achieve over 100 terawatt-hour of net electricity production by 2030.
In Paris, TotalEnergies traded 1.2% lower at EUR75.53. In London, Shell was 1.1% lower at 3,344.75 pence each. In New York, KKR closed up 0.5% at USD101.43 on Friday.
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