Energy major TotalEnergies has agreed to sell a 50% stake in its North American solar portfolio to investment firm KKR in a deal valued at $950 million.
The portfolio comprises six utility-scale solar assets and 41 distributed generation assets, mostly located in the United States, with a combined capacity of 1.4 gigawatts and an enterprise value of $1.25 billion.
TotalEnergies will retain a 50% stake in the portfolio and continue to operate the assets, selling some of the electricity produced. According to Stephane Michel, President of Gas, Renewables & Power at TotalEnergies, “The partnership will help the group’s expansion in the deregulated North American electricity market.”
This deal aligns with TotalEnergies’ capital recycling strategy in its integrated power business, allowing the company to redeploy capital into next-generation projects or growth opportunities while benefiting from income streams. The transaction mirrors a similar deal in December 2024, where TotalEnergies sold a 50% interest in a 2 GW solar and battery portfolio in Texas to Apollo, generating around $800 million.
The sale includes assets valued at $1.25 billion, with KKR acquiring a 50% stake for $950 million. TotalEnergies will use the proceeds to refinance and support its growth plans. By partnering with KKR, TotalEnergies spreads project risk while maintaining operational and financial exposure to upside performance.
TotalEnergies’ strategy focuses on expanding its renewable energy capacity while optimizing its portfolio through strategic partnerships and divestitures. This partnership strengthens the company’s ability to compete with U.S. and global renewables players by ensuring capital agility and renewal of project pipelines.
The deal is expected to benefit both parties, with TotalEnergies leveraging KKR’s expertise to enhance its renewable energy portfolio. As the renewable energy sector continues to evolve, strategic partnerships like this will play a crucial role in driving growth and innovation.