TotalEnergies has signed an agreement with Czech group Energetický a průmyslový holding, a.s. (EPH) to acquire 50% of its flexible power generation portfolio in Western Europe. The transaction, valued at €10.6bn ($11.48bn), will lead to the creation of a 50/50 joint venture between the two companies, including gas-fired power plants, biomass facilities, and battery systems.
A 14 GW European portfolio in operation and development
The deal covers over 14 GW of gross capacity, including assets in operation or under construction, with net output estimated at 15 TWh/year, targeting 20 TWh by 2030. An additional 5 GW is under development. The portfolio is spread across Italy (7.5 GW), the United Kingdom and Ireland (7.1 GW), the Netherlands (3.6 GW), and France (1.1 GW).
EPH will receive €5.1bn ($5.52bn) in TotalEnergies shares, representing 95.4 million shares priced at €53.94 each. This corresponds to approximately 4.1% of TotalEnergies’ share capital. Upon completion, EPH will become one of the company’s largest shareholders.
Optimising the gas-to-power value chain
This acquisition aligns with TotalEnergies’ integrated power strategy. It enhances the group’s flexible generation capacity, complementing its intermittent renewable assets, and reinforces its presence in the most profitable European electricity markets.
In parallel, the transaction allows value creation from approximately 2 million tonnes/year of liquefied natural gas (LNG), reinforcing the group’s value chain between the United States and Europe. The agreement also includes a joint industrial management structure, while each company will market its share of production through a tolling agreement.
Immediate financial impact and revised capital guidance
The group anticipates an increase in available cash flow of approximately $750mn annually over the next five years, offsetting the dividend requirements from the newly issued shares. TotalEnergies also expects its Integrated Power segment to generate positive free cash flow by 2027, one year ahead of schedule.
As a result, TotalEnergies has lowered its annual net capital expenditure guidance to $14-16bn for 2026-2030, down from $15-17bn. Of this, $2-3bn annually will be allocated to power activities, while maintaining its 2030 electricity generation target of 100-120 TWh.
