TotalEnergies has agreed to acquire Shell's onshore renewables business in Europe, which includes a portfolio of development-stage and operational assets across Italy, the Netherlands, Spain and the UK, company announced on Monday.
Under the agreement, TotalEnergies will acquire Shell's entire onshore renewables business in Europe, including around 500 megawatts of solar and wind assets that are either operating or under construction, mainly in Italy and the Netherlands.
The acquisition also includes a 3.5-gigawatt development pipeline of solar, wind and battery storage projects across Italy, the UK and Spain.
The transaction, which is expected to close by the end of 2026 subject to regulatory approvals, will bring the acquired portfolio fully under TotalEnergies' ownership.
The company said the acquisition strengthens its power generation activities in four key European markets, where its renewables portfolio totals nearly 10 gigawatts of gross installed or under-construction capacity and 27 gigawatts under development.
In a separate transaction, TotalEnergies agreed to sell a 50% stake in a 1.2-gigawatt portfolio of largely developed onshore solar and wind assets to insurance accounts managed by KKR.
The portfolio, located across Germany, Spain, France and Poland, has an enterprise value of €1.8 billion.
TotalEnergies will retain the remaining 50% stake and continue operating the assets after the transaction closes, which is also expected in 2026, subject to customary closing conditions.
Electricity generated by the assets is already being sold to third parties or will be marketed by TotalEnergies.
Commenting on the deals, Stephane Michel, president of 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."
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
