TotalEnergies said it has agreed to acquire 50% of EPH’s flexible power generation platform in a transaction valuing the assets at €10.6 billion, expanding its position in European gas-fired, biomass and battery-backed capacity.
The deal covers more than 14 GW of flexible generation assets either operating or under construction in Italy, the United Kingdom, Ireland, the Netherlands and France, the company said. The portfolio includes battery systems in all four markets, with about 0.4 GW under construction in the UK and Ireland, 0.2 GW in the Netherlands and 100 MW in France.
Under the agreement, EPH will receive €5.1 billion in shares of TotalEnergies, equal to roughly 4.1% of the French company’s capital. The transaction will create a 50/50 joint venture that will oversee the industrial management and development of the portfolio, with each partner marketing its share of output under a tolling arrangement.
TotalEnergies said the acquisition strengthens its Integrated Power strategy by coupling intermittent renewable power with flexible generation and storage. The company noted that secured capacity revenues represent around 40% of the platform’s gross margin.
The portfolio includes 7.5 GW of assets in Italy, 7.1 GW across the UK and Ireland, 3.6 GW in the Netherlands and 1.1 GW in France. The transaction also covers about 5 GW of projects under development.
TotalEnergies said the deal will immediately boost shareholder returns, adding around $750 million to available cash flow annually over the next five years. The company said its Integrated Power segment is now expected to generate positive free cash flow from 2027, a year earlier than previously planned, while its return on average capital employed (ROACE) for the segment is projected to rise from 10% to 12%.
As part of the announcement, the company said it will lower its annual net capital expenditure guidance for 2026–2030 by $1 billion to a range of $14–$16 billion, with $2–$3 billion earmarked for Integrated Power.
Patrick Pouyanné, chairman and chief executive of TotalEnergies, said the acquisition marks a significant step for the company. “This acquisition marks another major milestone in TotalEnergies’ strategy to build an integrated electricity player in Europe,” he said. “By joining forces with EPH as part of a long-term partnership, we are accelerating the implementation of our Integrated Power strategy and strengthening our ability to provide reliable, competitive, and low-carbon energy to our customers by leveraging the complementarity of our renewable and flexgen portfolio.” He added that “given our position as the #1 gas supplier in Europe, this transaction enables us to fully capitalize on gas-to-power integration and create added value for our LNG chain, independently of oil cycles.”
Daniel Kretinsky, chairman of EPH’s board, said the partnership builds on long-standing confidence in the French company. “This transaction is founded on our strong appreciation of TotalEnergies, its management team led by Patrick Pouyanné and its strategy,” he said. “We are both highly interested in becoming a long-term anchor shareholder of TotalEnergies and excited to create a joint venture which is already today a leading player in European flexible power generation.”
TotalEnergies said the transaction is expected to close in mid-2026, subject to regulatory approvals and employee consultation processes.
