TotalEnergies (TTEF.PA) has agreed to sell a 50% stake in a 1.4 gigawatt (GW) solar portfolio in North America to insurance vehicles and accounts managed by global investment firm KKR, the French energy company said on Monday.
The transaction, which values the portfolio at $1.25 billion, will result in proceeds of approximately $950 million to TotalEnergies at closing, including funds from ongoing bank refinancing. The deal is subject to customary closing conditions.
The portfolio comprises six utility-scale solar projects totaling 1.3GW and 41 distributed generation projects with a combined capacity of 140 megawatts (MW), primarily located in the United States. TotalEnergies will retain a 50% stake and continue to operate the assets following completion of the transaction.
“This transaction with KKR, a long-term partner of TotalEnergies, unlocks value from newly commissioned assets and further strengthens the profitability of our integrated power business,” said Stéphane Michel, president of gas, renewables and power at TotalEnergies.
KKR managing director Cecilio Velasco said the assets represent “high-quality renewable energy assets with long-term contracts,” adding that the firm sees long-term value in the growing U.S. clean energy sector.
The deal aligns with TotalEnergies’ broader integrated power strategy, under which the company targets a return on average capital employed (ROACE) of 12% by divesting up to 50% of renewable assets once they are operational.
TotalEnergies is expanding its renewable power portfolio globally as part of its transition towards lower-carbon energy, while maintaining capital discipline through asset rotation.
