TotalEnergies Sells 50% Of 1.4 GW North American Solar Portfolio to KKR In $1.25 Billion Deal, Expects $950 Million At Closing

TotalEnergies has signed an agreement with insurance vehicles and accounts managed by KKR, a leading global investment firm, to sell 50 percent of its 1.4 gigawatt solar portfolio in North America. The deal values the portfolio at an enterprise value of 1.25 billion US dollars. Once the transaction and related bank refinancing are finalized, TotalEnergies expects to receive 950 million US dollars at closing.

The portfolio being sold includes six utility-scale solar projects with a combined capacity of 1.3 gigawatts, along with 41 distributed generation assets totaling 140 megawatts. These assets are primarily located in the United States. Electricity from the projects has either already been contracted with third parties or will be marketed directly by TotalEnergies. Following the transaction, which remains subject to customary closing conditions, TotalEnergies will retain a 50 percent stake and continue to operate the assets.

Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, stated, We are pleased to enter into this new strategic partnership with KKR in North America, a key deregulated electricity market to expand our integrated business model. Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”

Cecilio Velasco, Managing Director, KKR, mentioned, “TotalEnergies is a renewable energy industry leader globally, and we are thrilled to establish this joint venture with the TotalEnergies team to support their renewables business. We have long been investors in renewables through our infrastructure platform, having committed more than $23 billion to date in energy transition investments. TotalEnergies’ North American solar portfolio is a great fit for us, representing high-quality renewable energy assets with long term contracts.”

This move reflects the company’s Integrated Power strategy, which focuses on building a competitive portfolio of renewable energy sources, such as solar and wind, complemented by flexible assets like combined-cycle gas turbines (CCGT) and storage. The model is designed to deliver reliable clean power to customers. To achieve a targeted 12 percent return in its Integrated Power business, TotalEnergies regularly sells up to 50 percent of its renewable projects once they reach commercial operation and are de-risked. This approach allows the company to maximize asset value while managing risks effectively.