Shell and Ares Form Joint Venture for Solar Expansion, Analysts See 7.08% Upside Potential

Shell and Ares Management have formed a joint venture, Tango Holdings, to develop 496 megawatts of solar projects across four states. Analysts predict an average price target of $77.32 for Shell PLC, with a potential 7.08% upside. However, GuruFocus' GF Value estimates suggest a possible downside of 10.28%. The joint venture underscores Shell's commitment to renewable energy expansion and capital optimization.

Title: Shell and Ares Management Form Joint Venture to Develop 496 MW of Solar Projects

Shell plc (NYSE:SHEL) and Ares Management Corporation (NYSE:ARES) have announced the formation of a joint venture, Tango Holdings, LLC, to manage 496 megawatts (MW) of solar projects across Ohio, Kentucky, Oklahoma, and Indiana. This strategic partnership aims to accelerate the development of renewable energy projects in key U.S. markets.

The joint venture, Tango Holdings, will be jointly owned by Ares and Savion Equity, LLC, with Ares holding an 80% equity interest and Savion retaining 20% [1]. The venture includes ownership in the Martin County Solar Project, the Kiowa County Solar Project, and three additional solar projects currently under construction. Savion will serve as the managing member, while Shell Renewable Asset Management International will oversee asset management [2].

The formation of Tango Holdings aligns with Shell’s broader strategy to selectively develop renewable power projects and gradually reduce ownership as these assets near maturity. This approach allows Shell to efficiently scale its renewable energy portfolio, optimize capital returns, and uphold financial discipline. Shell's Executive Vice President for Power, Greg Joiner, stated, "The investment by Ares is a testament to Savion’s success building and operating assets that deliver renewable power to key energy markets in the USA" [2].

This partnership is a significant milestone for Ares Management, which has been expanding its renewable energy portfolio. Over the past year, Ares has acquired interests in power generation assets totaling over 4.0 gigawatts across nine states and four power markets. The Tango joint venture builds on this foundation by adding 496 MW of solar capacity to Ares' existing renewable holdings [1].

The U.S. energy transition is accelerating, driven by regulatory momentum such as the Inflation Reduction Act of 2022, which has unlocked $370 billion in clean energy incentives. This act includes tax credits for solar and storage projects, providing a strong tailwind for renewable energy investments [4]. The formation of Tango Holdings underscores Shell’s commitment to renewable energy expansion and capital optimization, aligning with its broader strategy to advance its renewable energy goals through Savion’s ongoing development pipeline.

Analysts predict an average price target of $77.32 for Shell PLC, with a potential 7.08% upside. However, GuruFocus' GF Value estimates suggest a possible downside of 10.28%. Despite these projections, the joint venture demonstrates Shell’s strategic focus on renewable energy and its ability to optimize capital returns through selective development and ownership reduction [3].

References
[1] https://www.investing.com/news/company-news/ares-savion-establish-tango-joint-venture-for-us-solar-projects-93CH-4156065
[2] https://solarquarter.com/2025/07/29/savion-a-shell-subsidiary-forms-joint-venture-to-accelerate-development-of-5-u-s-solar-projects/
[3] https://realassets.ipe.com/news/apg-to-commit-over-a1bn-to-australian-renewable-energy-via-octopus/10131919.article
[4] https://www.ainvest.com/news/ares-management-strategic-solar-venture-shell-subsidiary-high-yield-play-energy-transition-2507/