TotalEnergies Sells 50% Stake in Portuguese Renewables Portfolio
Jul 03, 2025
TotalEnergies has sold a 50% stake in a 604-megawatt portfolio of renewable energy assets in Portugal to a Japanese consortium for €178.5 million, the company announced Wednesday.
The deal, part of TotalEnergies’ capital rotation strategy, allows the French energy giant to optimize its investments in its growing electricity division while maintaining operational control.
The consortium includes MM Capital Partners 2 Co., Ltd., Daiwa Energy & Infrastructure Co., Ltd., and Mizuho Leasing Co., Ltd. The assets—comprising wind, solar, and hydroelectric projects—have an average age of 16 years and benefit from regulated tariffs that will eventually transition to market-based pricing. TotalEnergies will continue to manage the assets and has secured the rights to purchase their output once the current tariffs expire.
“We are pleased with this partnership in Portugal, a country where TotalEnergies intends to continue its development in renewables,” said Olivier Jouny, the company’s Senior Vice President for Renewables. “This transaction allows us to optimize our capital allocation in our integrated electricity activities and contribute to improving the sector’s profitability.”
The sale aligns with TotalEnergies’ broader strategy to develop, operate, and partially divest renewable assets to recycle capital for new projects—a model that has gained traction among major energy companies shifting portfolios toward low-carbon assets. The company has pursued similar partnerships globally as it scales its renewable footprint while maintaining financial flexibility.
Portugal’s renewable energy sector has been attracting significant foreign investment in recent years, supported by favorable regulations and ambitious national targets. In 2023, renewables accounted for over 60% of Portugal’s electricity production, according to the International Energy Agency, with the country aiming to produce 80% of its power from renewables by 2030.
This transaction echoes similar moves by TotalEnergies across Europe and Asia as the company navigates a competitive energy transition landscape. For instance, TotalEnergies has recently expanded its presence in offshore wind projects and solar ventures in markets including Spain and Japan, as the company continues to shift away from its legacy oil and gas operations.
The deal also highlights growing Japanese interest in international renewable assets. Japanese investors, facing limited domestic opportunities, have increasingly looked to Europe for stable, regulated energy projects. This trend reflects broader shifts in global capital flows toward sustainable investments.
’ active portfolio management and global renewables push come amid intensifying competition among oil majors pivoting to clean energy. Similar strategies have been observed in the recent wave of European energy M&A activity, as companies seek to balance growth, capital discipline, and energy transition commitments.
Portugal itself remains a key battleground for renewable energy expansion, offering attractive conditions for both operators and investors amid Europe’s accelerating decarbonization efforts.
For TotalEnergies, the Portuguese deal exemplifies a disciplined, partnership-driven approach to scaling renewables, positioning the company to remain competitive as the energy transition reshapes global power markets.
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