TotalEnergies has signed an agreement with insurance vehicles and accounts managed by KKR for the sale of 50% of its 1.4 GW solar portfolio in the US. The portfolio is valued at an enterprise value of $1.25 billion, and TotalEnergies is expected to receive $950 million at closing, including proceeds from related bank refinancing.

The transaction includes six utility-scale solar assets with a combined capacity of 1.3 GW and 41 distributed generation assets totaling 140 MW, primarily located in the United States. Electricity from these projects has either been sold to third parties or will be commercialized by TotalEnergies.

“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.”

TotalEnergies will retain a 50% stake in the assets and continue to operate them after the closing, which remains subject to customary conditions.

“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”, said Cecilio Velasco, Managing Director, KKR. “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.”