Shell announced signing a Sale and Purchase Agreement (SPA) to sell its entire European onshore renewables portfolio to TotalEnergies as part of its strategy to optimize capital allocation and focus on businesses where it has a competitive advantage, noted a press release by Shell.
The transaction covers development-stage and operational renewable energy assets across Italy, the Netherlands, Spain, and the UK. Financial terms of the deal were not disclosed. The acquisition remains subject to regulatory approvals and is expected to close by the end of 2026.
Shell said the divestment aligns with the strategy unveiled during its 2025 Capital Markets Day, under which the company is actively reshaping its power portfolio by recycling capital into businesses that generate stronger long-term returns.
“This agreement reflects Shell’s continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at Capital Markets Day 2025,” said Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell.
“We are recycling capital and prioritizing 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,” de Haan added.
The portfolio being sold comprises approximately 0.5 gigawatts (GW) of renewable generation capacity that is either operational or under development, in addition to a broader pipeline of future renewable energy projects.
For TotalEnergies, the acquisition enhances its power generation footprint across four key European markets, advancing its Integrated Power strategy. The deal expands its regional renewables portfolio to nearly 10 GW of gross operational and in-construction capacity, alongside an additional 27 GW in 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, 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,” Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies, commented.
Since Chief Executive Wael Sawan took over in 2023, Shell has been scaling back investments in lower-return renewable businesses in favor of higher-margin oil and gas projects, liquefied natural gas (LNG), power trading, and customer energy solutions. The strategic shift has coincided with stronger financial performance, with Shell recently reporting its second-highest quarterly profit on record, supported by higher energy prices and robust LNG trading.
