TotalEnergies has agreed to sell a 50% stake in a 1.4GW North American solar portfolio to insurance vehicles and accounts managed by global investment firm KKR.
The deal values the portfolio at $1.25bn and alongside refinancing arrangements, will provide TotalEnergies with $950m upon closing.
The portfolio consists of six utility-scale solar projects with a combined capacity of 1.3GW, plus 41 distributed generation assets totalling 140 MW.
These assets are primarily located in the United States, with their electricity either contracted to third parties or to be marketed by TotalEnergies.
Following completion, subject to customary conditions, TotalEnergies will retain a 50% share and continue to operate the assets.
“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,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.
“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 at KKR, added: “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 $23bn to date in energy transition investments.”
The transaction reflects TotalEnergies’ Integrated Power business model, which combines renewables such as solar and wind with flexible assets including storage and combined-cycle gas turbines.
To reach its 12% profitability target, the company divests up to half of its renewable projects once they begin operation and risk levels are reduced. This strategy enables TotalEnergies to extract value from its assets while managing financial exposure.
