Shell has signed a Sale and Purchase Agreement (SPA) with TotalEnergies for the sale of its European onshore renewables portfolio, marking the latest step in the company’s ongoing effort to streamline its power business and reallocate capital toward higher-value opportunities.
The portfolio being sold spans four countries, Italy, the Netherlands, Spain and the UK, and includes both development-stage and operational assets.
According to Shell, the combined package represents approximately 0.5 GW of renewable generation capacity currently in operation or under development, along with a pipeline of projects slated for future development.
The divestment aligns with strategic priorities Shell laid out at its Capital Markets Day in 2025, when the company signalled it would take a more selective approach to its power portfolio, favouring assets and capabilities that offer differentiated long-term value.
Machteld de Haan, President of Downstream, Renewables and Energy Solutions at Shell, commented on the rationale behind the deal.
“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,” she said.
“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.”
Shell has indicated that the sale is part of a broader push to concentrate resources in segments where it believes it holds a competitive edge.
Company notes accompanying the announcement state that Shell is prioritising areas where it has differentiated capabilities in power, including asset-backed trading, increasing access to flexible generation capacity and customer-focused energy solutions, all while maintaining discipline on capital allocation and returns.
By exiting the onshore renewables assets covered in this agreement, Shell aims to free up capital that can be directed toward initiatives more closely tied to its trading and energy solutions strategy.
The company has framed the move as consistent with a broader industry trend among major energy players reassessing which parts of the renewables value chain best suit their strengths, rather than pursuing generation ownership across the board.
For TotalEnergies, the acquisition adds a sizable European onshore renewables footprint to its portfolio, though the company has not yet issued detailed comment on its plans for the assets following completion.
The transaction remains subject to regulatory approvals in the relevant jurisdictions. Shell and TotalEnergies expect the deal to close by the end of 2026, pending those approvals.
Neither company disclosed the financial terms of the agreement.
The sale continues a pattern of portfolio adjustments at Shell as it works to sharpen its focus within the evolving renewable energy and power markets landscape.
