Key Takeaways
- Sector: Energy Infrastructure & Renewables.
- Geography: United States.
Analysis
TotalEnergies has signed an agreement with vehicles and accounts managed by KKR for the sale of a 50% stake in a 1.4 GW solar portfolio across North America. The transaction values the assets at an enterprise value of 1.25 billion USD. With refinancing included, TotalEnergies will receive about 950 million USD at closing.
The deal covers six utility-scale solar projects totaling 1.3 GW and 41 distributed generation assets with a capacity of 140 MW, located primarily in the United States. Electricity from these projects is already under long-term offtake agreements or will be commercialized by TotalEnergies. The company will retain a 50% stake and continue to operate the assets post-closing, subject to customary approvals.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, noted that the transaction supports the group’s Integrated Power business model by unlocking value from recently commissioned projects and enhancing profitability. Cecilio Velasco, Managing Director at KKR, highlighted that the acquisition strengthens KKR’s renewable infrastructure portfolio, which has attracted more than 23 billion USD in energy transition investments globally to date.
TotalEnergies pursues a model that combines renewables (solar, onshore wind, offshore wind) with flexible assets such as storage and combined-cycle gas turbines to deliver clean firm power. The company typically divests up to 50% of its renewable projects once they reach commercial operation, allowing it to recycle capital while meeting a 12% profitability target for its Integrated Power business.
As of June 2025, TotalEnergies had over 30 GW of installed gross renewable capacity and expects to reach 35 GW by year-end 2025, with a longer-term target of generating more than 100 TWh annually by 2030.
This deal reflects a broader trend of institutional and private equity investors acquiring stakes in large-scale renewable portfolios. Notable recent examples include:
- Brookfield Renewable acquiring a 50% stake in X-Elio’s global solar platform, valuing the company at more than 2 billion USD.
- BlackRock Alternatives purchasing a minority stake in Atlas Renewable Energy to expand its exposure to Latin American solar projects.
- Global Infrastructure Partners (GIP) partnering with Enel in a multi-billion-dollar joint venture for U.S. wind and solar assets.
- Ardian Infrastructure increasing its renewable footprint in Europe through joint ventures with utilities to finance solar and wind farms.
These partnerships illustrate how private equity and institutional capital are critical in scaling renewable capacity, particularly in deregulated power markets like the United States.