Strategy
Integrated Power: building a profitable electricity value chain
TotalEnergies’ integrated and balanced multi-energy strategy is based on two pillars: hydrocarbons, notably LNG, and electricity, an energy at the heart of the transition. In this fast-growing market, the Company is developing profitably across the entire value chain, from production to trading and sales. Read on to find out more.
Providing low-carbon electricity available 24-7 to our customers
Renewable energies are vital to reducing the carbon intensity of the electricity mix. At TotalEnergies, we have chosen to invest in renewables while establishing profitable business models. We are targeting net electricity production of over 100 TWh by 2030, mainly from renewables. Our strengths? Our expertise in the management of major projects, covering their financing, cost control and execution.
And since the key aim is to provide low-carbon electricity available 24-7* to our customers, renewable energies, which are intermittent by nature, need to be associated with flexible storage and production capacities. To that end, we are building a portfolio combining production assets that are both renewable (solar, wind) and flexible (combined-cycle gas stations), as well as batteries for energy storage and discharge.
A fast-growing activity and ambitious objectives on development and profitability
The Integrated Power segment continued to grow strongly in 2024, generating $2.6 billion in cash flow for the Company, up 19% from 2023, and posting a return on average capital employed (ROACE) of 10%. Net electricity production totalled 41 TWh, up 23% on the previous year.
In 2025, annual net electricity production is expected to grow by a further 20% to top the 50 TWh mark, and the Company aims to pursue this powerful momentum with ambitious objectives: net electricity production of over 100 TWh in 2030 and a ROACE of at least 12%, equivalent to that of the Company’s Upstream portfolio with a $60 barrel price.
Our drivers: developing better, selling better and optimizing our portfolio
How to achieve these objectives? By focusing on deregulated markets, particularly the United States, United Kingdom, Germany, Brazil and India. In these markets, we aim to sell 70% of our production via long-term contracts and 30% outside such agreements, on the spot markets, to take advantage of price volatility. In parallel, we are optimizing our portfolio of assets by industrialising farmdowns. We sell up to 50% of our renewables assets once they reach their commissioning date and reallocate the capital to new projects.
More energy, less emissions: TotalEnergies is resolutely pursuing its strategy of profitable growth in electricity by developing a competitive low-carbon electricity production model driven by strong production and profitability objectives.
Objectives
100 TWh in 2030
12% ROACE
Key figures
- AT END-2024:
41 TWh of net electricity production - OF WHICH
26 TWhfrom renewable sources -
15 TWhfrom gas flexible capacities -
8.9 millionelectricity and gas customers, professionals and individuals