TotalEnergies SE has signed an agreement to farm down 50 percent of a 1.4-gigawatt (GW) solar portfolio in North America to Kohlberg Kravis Roberts & Co LP (KKR).
The transaction gives the assets an enterprise value of $1.25 billion. TotalEnergies expects to receive $950 million, it said in a statement on its website.
“The transaction covers six utility-scale solar assets with a combined capacity of 1.3 GW, and 41 distributed generation assets totaling 140 megawatts, primarily situated in the United States”, the French integrated energy company said. “The electricity production of these projects has either been sold to third parties or will be commercialized by TotalEnergies”.
It said it will retain 50 percent 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 Stephane Michel, president for gas, renewables and 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 of New York City-based global investor KKR, said, “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”.
On Tuesday TotalEnergies said it had completed the sale of 50 percent of a 270-megawatt (MW) wind and solar portfolio in France, valued EUR 265 million ($311.16 million), to Eiffel Investment Group. It retains 50 percent and remains operator.
TotalEnergies says it is building “a competitive portfolio that combines renewables (solar, onshore wind, offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers”.
“To achieve the 12 percent profitability target it sets for its Integrated Power business, TotalEnergies divests up to 50 percent of its renewable assets once they reach commercial operation date and are derisked, allowing the company to maximize asset value and manage risks”, it says.
Earlier this year TotalEnergies completed the sale of 50 percent of its 604-MW wind, solar and hydro portfolio in Portugal to a consortium of MM Capital Partners 2 Co Ltd, Daiwa Energy & Infrastructure Co Ltd and Mizuho Leasing Co Ltd for proceeds of EUR 178.5 million.
“Following this transaction, TotalEnergies will retain a 50 percent stake and continue to operate the assets”, TotalEnergies said in a statement July 2. “Additionally, once the regulated tariffs they benefit from expire, TotalEnergies will purchase the production of these assets, which have an average age of 16 years, and will handle their commercialization”.
Late last year TotalEnergies signed a deal to farm down 50 percent in a portfolio of solar and battery storage projects with two GW of aggregate capacity in Texas. TotaEnergies expects $800 million in proceeds from the sale to New York City-based Apollo Global Management Inc, TotalEnergies said in a statement December 4, 2024.
The transaction consists of three solar projects with a total capacity of 1.7 GW and two battery storage projects with an aggregate capacity of 300 MW.
TotalEnergies will retain 50 percent and remain as operator.
TotalEnergies had 27.8 GW of installed renewable generation capacity as of June 2025, according to its quarterly report.
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