TotalEnergies SE has agreed to acquire Shell's 4-Gw onshore renewables portfolio in Europe.

The portfolio includes 500 Mw of solar and wind assets in operation or under construction, primarily in Italy and the Netherlands, as well as a 3.5-Gw pipeline of solar, wind, and battery storage projects in Italy, the UK, and Spain, the company said Aug. 3.

In the Netherlands, the assets include 254.2 Mw of installed peak capacity across the Moerdijk, Heerenveen-Zuid, and Emmen (GZI Next) solar parks; the Sas van Gent-Zuid and Koegorspolder solar parks in Terneuzen; and the Pottendijk combined solar and wind park in Emmen.

TotalEnergies will assume full ownership of the portfolio upon closing. The transaction is subject to regulatory approvals and is expected to be completed by yearend 2026.

"This agreement reflects Shell's continued focus on actively managing and further strengthening its electricity portfolio, in line with the strategy outlined during Capital Markets Day 2025," said Machteld de Haan, president, downstream, renewables and energy solutions, Shell.

De Haan said Shell is prioritizing investment in areas where it has competitive advantages, including asset-backed power trading and customer-focused energy solutions.

Shell said it will continue to buy and sell onshore solar and wind power in Europe and will retain interests in projects including Holland Hydrogen 1, Northern Lights CCS in Norway, LNG, and carbon capture and storage activities.

KKR acquires 50% interest in European renewables portfolio

In another deal, TotalEnergies agreed to farm out a 50% interest in a largely developed 1.2-Gw onshore solar and wind portfolio in Europe to KKR.

The company said the transaction is consistent with its strategy of selling 50% interests in renewable assets once they have been developed.

The portfolio includes assets in Germany, Spain, France, and Poland. Electricity generated by the assets has already been sold to third parties or will be marketed by TotalEnergies.

TotalEnergies will retain a 50% interest in the portfolio and continue as operator following closing, which is expected later in 2026, subject to customary conditions.

The company said the farmout complements its power generation activities in those markets and supports deployment of its Integrated Power strategy in Europe. TotalEnergies' European renewables portfolio comprises nearly 10 Gw of gross installed capacity or capacity under construction and 27 Gw under development.

"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," said Stéphane Michel, president, gas, renewables and power, TotalEnergies.

Michel said the acquisition complements the flexible generation capacity of TTEP, TotalEnergies' joint venture with EPH, particularly in Italy, the Netherlands, and the UK.