Oil supermajor Shell is considering a joint bid with Dutch pension fund manager PGGM to buy green-minded Dutch utility Eneco, which is thought to be valued at around €3bn ($3.4bn)

The Anglo-Dutch corporation has made a string of investments in the electricity sector in recent years, having vowed to invest $1bn-2bn a year until 2020 in what it terms “new energies” — but this would be its biggest play by far.

Eneco is among the most forward-thinking utilities in Europe, offering decentralised energy solutions such as PV panels, batteries and virtual power plants, as well as cross-sector solutions including electric-vehicle (EV) smart-charging services, heat pumps and smart thermostats.

The Netherlands’ second-largest energy supplier sources most of its electricity from renewables — and owns 1.33GW of onshore wind, 427MW of offshore wind, and 215MW of solar.

Eneco’s owners — 53 Dutch municipalities — put the company up for sale in December, with an auction expected later this year. No other potential bidders have yet thrown their names into the hat, although some of Europe’s largest utilities are said to be considering a bid.

“PGGM and Shell combine the ambitions and financial commitment to build on Eneco’s sustainable strategy and are determined to competitively grow the renewable energy products and services offer for millions of customers in North West Europe,” the two companies said in a statement.

“This [deal would] provide opportunities along the entire energy value chain, from generation of renewable power to trading and delivery at home, on the road and at work,” explained Maarten Wetselaar, Shell’s Gas & New Energies director.

“Eneco’s business neatly fits with Shell’s New Energies activities and ambitions to continuously find new ways to reduce carbon emissions and provide more and cleaner energy. The consortium is committed to expand and develop business models that create both societal and commercial value.”

Shell has shown increasing interest in the power sector since 2017, acquiring UK energy supplier First Utility, US demand-response and retail power solutions provider MP2 Energy, Dutch EV charging network owner NewMotion and US distributed energy/microgrid solutions provider GI Energy and US solar developer Silicon Ranch.

The oil giant has also invested in Texas-based thermal-storage start-up Axiom Energy and California start-up Inspire Energy, which offers customers clean energy through monthly subscriptions.

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Last month, Wetselaar said that Shell could pump up to $4bn annually into green energy after 2020 if its initial investment strategy proves to be “financially credible”.

PGGM sees itself as a “responsible” investor and is aiming to reduce the carbon footprint of its investment portfolio.

It is unclear, at this stage, what proportion of the Eneco bid would come from Shell or its partner.