TotalEnergies Divests 50% Stake In $1.25 Billion North American Solar Portfolio To KKR

TotalEnergies, a global multi-energy company, has announced a significant transaction in its renewables business, agreeing to sell a fifty percent stake in a 1.4 gigawatt solar portfolio located in North America. The purchaser is a group of insurance vehicles and accounts managed by KKR, a prominent global investment firm. This deal is a key part of TotalEnergies’ integrated power business model, valuing the entire portfolio at an enterprise value of $1.25 billion. On the closing of the deal, TotalEnergies anticipates receiving a total of $950 million, derived from this transaction and from bank refinancing that is currently being finalized.

The portfolio subject to this divestment is substantial and spans various assets, predominantly within the United States. It encompasses six utility-scale solar projects with a combined capacity of 1.3 gigawatts, along with forty-one distributed generation assets that total 140 megawatts. The electricity generated by these projects is already committed under existing contracts sold to third parties, or it will be commercialized by TotalEnergies itself, securing future revenue streams. TotalEnergies will retain a 50% ownership interest in the assets. They will continue to be responsible for the operations of the portfolio following the completion of the transaction, which is subject to customary closing conditions.

This divestment aligns perfectly with TotalEnergies’ strategy for its Integrated Power business. The company is actively building a competitive and diverse portfolio that combines both renewable electricity generation sources, such as solar and onshore and offshore wind, with flexible assets like combined cycle gas turbines and energy storage. The core objective of this strategy is to provide clean, firm power to its customers.

The company has set a target of 12% profitability for its Integrated Power division. To achieve and maximize this profitability, TotalEnergies intentionally divests up to 50% of its renewable assets once they have reached their commercial operation date and the associated project risks have been significantly mitigated. This approach allows the company to unlock and maximize the value of its assets while effectively managing its capital and risk exposure across its portfolio.

TotalEnergies’ commitment to the electricity sector is substantial and continues to grow. As of the end of June 2025, the company reported having over thirty gigawatts of installed gross renewable electricity generation capacity. It aims to increase this to thirty-five gigawatts by the end of 2025 and has an ambitious long-term goal of surpassing 100 terawatt-hours of net electricity production by 2030. The establishment of this new strategic partnership with KKR is viewed as a crucial step in this expansion, particularly within the deregulated North American electricity market.

KKR views the partnership and the acquisition of the North American solar portfolio as an excellent fit for its long-standing infrastructure platform, which has already committed more than $23 billion toward energy transition investments, noting the high-quality nature of the assets and their long-term contracts.