TotalEnergies divests 50% of 1.4GW US solar portfolio

TotalEnergies has agreed to sell 50% of its 1.4GW solar portfolio in North America to insurance vehicles and accounts managed by investment firm KKR.

The portfolio, which has an enterprise value of $1.25 billion, includes six utility-scale solar assets with a combined capacity of 1.3GW, and 41 distributed generation assets totalling 140MW, located primarily in the United States.

Power produced by these assets will be sold to third parties or commercialised by TotalEnergies.

Cecilio Velasco, managing director, KKR, commented in a statement: “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.”

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TotalEnergies will keep a 50% stake in the assets and continue to operate them once the deal is closed.

Stéphane Michel, president of Gas, Renewables & Power at TotalEnergies, added: “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 mode. Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”

This transaction aligns with the energy company's strategic renewable energy objectives and business model, which aims to achieve the 12% profitability target it sets for its Integrated Power business.

To achieve this, TotalEnergies divests up to 50% of its renewable assets once they reach commercial operation date, maximising asset value and minimising risk.