Shell has agreed to sell its European onshore renewables business to TotalEnergies in a transaction covering assets in the United Kingdom, Italy, the Netherlands, and Spain. The move forms part of Shell’s broader strategy under CEO Wael Sawan to reduce its investments in low-carbon and renewable energy sectors.

The portfolio being transferred includes around four gigawatts of renewable capacity, comprising 500 megawatts of solar and wind assets either operational or under construction. It also encompasses a development pipeline of solar, wind, and battery-storage projects across Italy, the UK, and Spain.

Machteld de Haan, Shell’s president for downstream, renewables, and energy solutions, stated that the agreement demonstrates Shell’s focus on “actively managing and high-grading” its power portfolio. She noted that the company aims to recycle capital and concentrate on areas where it believes it holds distinct competitive advantages, such as asset-backed power trading and customer-oriented energy solutions.

From TotalEnergies’ perspective, Stéphane Michel, president for gas, renewables, and power, said the acquisition will enhance the company’s power generation presence in key deregulated European markets, enabling it to provide more cost-effective electricity.

The deal remains subject to regulatory approval and is anticipated to close by the end of 2026. The sale comes shortly after BP announced it was putting its UK North Sea business on the market, signaling a broader trend among major energy companies to recalibrate their portfolios amid evolving market conditions and energy transition priorities.