TotalEnergies Acquires Shell’s European Renewable Assets

Shell has agreed to sell its European onshore renewables business to TotalEnergies, transferring a portfolio of renewable energy assets spanning Italy, the Netherlands, Spain and the UK. The transaction is expected to close by the end of 2026.

The portfolio includes around 0.5 GW of renewable generation capacity, comprising both operating assets and projects under development, together with a pipeline of future renewable projects. While financial terms were not disclosed, the acquisition further expands TotalEnergies' renewable generation footprint across Europe.

For the power grid and transformer sector, the continued development of renewable generation is expected to drive ongoing investment in grid infrastructure, including substations, transformers and grid connection projects required to integrate new renewable capacity into transmission and distribution networks.

The transaction is part of Shell's broader strategy to streamline its business by reducing investments in certain low-carbon activities while prioritizing liquefied natural gas and upstream operations. Reports earlier this year indicated the company was exploring a sale of its European onshore renewables portfolio.

Separately, TotalEnergies also announced the sale of a 50% stake in an unrelated 1.2 GW renewable portfolio to investment firm KKR, valuing those assets at approximately €1.8 billion. The company said both transactions are "in line with its strategy to build renewable and gas-fired power generation capacity in key deregulated markets while selling down up to half of its renewables holdings at a profit."

This latest acquisition reflects the ongoing reshaping of Europe's renewable energy market, with implications for future grid expansion and the associated demand for power equipment supporting renewable integration.

Source: reuters.com