- Shell has agreed to sell its onshore renewables portfolio across the UK and Europe to TotalEnergies.
- The deal includes operating solar and wind assets as well as a pipeline of renewable energy projects.
- The move continues Shell's shift away from lower-return renewable investments towards its core energy business.
Shell has agreed to sell its European onshore renewables business, including assets in the UK, to TotalEnergies as the FTSE 100 energy giant continues to reshape its portfolio around businesses it believes can deliver stronger long-term returns.
The agreement covers renewable energy assets across the UK, Italy, Spain and the Netherlands. It includes around 500 megawatts of solar and wind capacity already in operation or under construction, alongside a wider pipeline of solar, wind and battery storage projects. The transaction remains subject to regulatory approvals and is expected to complete by the end of 2026.
A strategic shift gathers pace
The latest sale reflects Shell's broader strategy under chief executive Wael Sawan, who has steadily reduced the company's exposure to lower-return renewable businesses while increasing focus on oil, gas, energy trading and customer-focused energy solutions.
Machteld de Haan, Shell's president for downstream, renewables and energy solutions, reportedly said the agreement reflects the strategy outlined during the company's 2025 Capital Markets Day. She added that Shell is recycling capital and prioritising businesses where it believes it has stronger competitive advantages, including asset-backed power trading and customer-focused energy solutions.
The divestment follows a series of strategic changes over the past two years, including the sale of renewable assets in other markets and a reduction in investment in some clean energy projects as Shell seeks to improve shareholder returns.
TotalEnergies expands its European footprint
For TotalEnergies, the acquisition strengthens its position in Europe's electricity market. The company will take over operating renewable assets as well as future development projects across four key markets, expanding its integrated power business.
Stéphane Michel, president for gas, renewables and power at TotalEnergies, reportedly said the acquisition strengthens the company's power generation presence in key deregulated European markets and supports its strategy across the electricity value chain.
The announcement comes just days after BP revealed plans to sell its North Sea business, highlighting how major European energy companies are continuing to reshape their portfolios as they balance investor expectations, energy security and changing market conditions. While Shell is reducing its renewables exposure, TotalEnergies is expanding its clean energy portfolio through acquisitions, underscoring the different approaches being taken by Europe's biggest energy groups.
