TotalEnergies has agreed to sell 50% of its solar projects portfolio in North America to global investment firm KKR for about $1 billion, as part of the French supermajor’s renewables strategy to divest half of its already operational assets.
TotalEnergies is selling 50% of a portfolio of combined 1.4 gigawatts (GW) installed capacity in a transaction valuing said portfolio at $1.25 billion, the supermajor said on Monday.
Thanks to the transactions and the bank refinancing currently being finalized, TotalEnergies will receive a total of $950 million at closing of the sale.
Included in the sale are six utility-scale solar assets with a combined capacity of 1.3 GW, and 41 distributed generation assets totaling 140 MW, primarily situated in the United States. The electricity production of these projects has either been sold to third parties or will be commercialized by TotalEnergies, the French major said.
Unlike other European majors such as BP and Shell, which have outright reduced spending on renewables, TotalEnergies has a strategy to reach a
12% profitability target for its Integrated Power business. This means that TotalEnergies would typically divest up to 50% of its renewable assets once they reach commercial operation date (COD) and are de-risked, which allows it “to maximize asset value and manage risks.”
“Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.
In the United States, solar projects could see significant slowdown going forward, due to the Trump Administration’s policies, the industry warned earlier this month.
In a report hailing the installation of close to 18 GW in new capacity—including battery storage—over the first half of the year, which constituted 82% of all new capacity additions, the Solar Energy Industries Association also warned that the One Big Beautiful Bill Act has substantially changed the medium-term outlook.
The U.S. solar industry risks losing 44 GW in new capacity additions by 2030 as a result of the current Administration’s policies, SEIA said.
By Tsvetana Paraskova for Oilprice.com
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