TotalEnergies has signed a landmark agreement with global investment firm KKR to divest 50% of its 1.4 gigawatt (GW) solar portfolio in North America.
The transaction, which values the portfolio at an enterprise value of $1.25 billion, represents a major milestone in TotalEnergies’ strategy to accelerate its Integrated Power business while maintaining a strong foothold in renewable energy operations.
As part of the deal, TotalEnergies will receive $950 million in proceeds at closing, supported by bank refinancing currently in the final stages.
The agreement covers six utility-scale solar assets with a combined capacity of 1.3 GW and an additional 41 distributed generation assets totaling 140 megawatts (MW), located primarily across the United States.
Announcing the transaction, Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said the partnership reinforced the company’s integrated power strategy in one of the world’s most dynamic deregulated electricity markets.
“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.
“Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies
The French energy major will retain a 50% stake in the assets and continue operating them following the deal’s closure, which remains subject to customary approvals and conditions.
KKR Expands Renewable Energy Footprint
For KKR, the transaction further deepens its commitment to the global energy transition. Cecilio Velasco, Managing Director at KKR, praised the quality of the assets and the synergies with the firm’s infrastructure investment platform.
“TotalEnergies is a renewable energy industry leader globally, and we are thrilled to establish this joint venture with the TotalEnergies team to support their renewables business.
“We have long been investors in renewables through our infrastructure platform, having committed more than $23 billion to date in energy transition investments.
Cecilio Velasco, Managing Director at KKR
This collaboration positions both firms to take advantage of rising demand for clean power in the U.S., particularly as states and corporations pursue ambitious net-zero commitments.
Velasco added, “TotalEnergies’ North American solar portfolio is a great fit for us, representing high-quality renewable energy assets with long-term contracts.”
The deal reflects TotalEnergies’ unique Integrated Power business model, which combines renewable generation with flexible assets such as gas-fired power plants and storage to deliver reliable clean energy to customers.
To achieve a targeted 12% profitability rate, the company has adopted a strategy of selling up to 50% of its renewable assets once they reach commercial operation and are fully derisked.
This approach allows the company to maximize asset value, recycle capital, and mitigate exposure to market volatility.
Driving Renewable Growth
The transaction also underlines TotalEnergies’ aggressive push into renewable energy, particularly in North America.
At the end of June 2025, the company had more than 30 GW of installed gross renewable electricity generation capacity globally.
It has set a near-term target of 35 GW by the end of 2025 and an ambitious long-term goal of producing over 100 terawatt-hours (TWh) of net electricity annually by 2030.
The company’s renewable portfolio spans solar, onshore wind, and offshore wind, complemented by flexible generation and storage assets to ensure stable power delivery even during periods of variable renewable output.
TotalEnergies’ move aligns with the broader global trend of oil and gas majors pivoting towards low-carbon solutions while still leveraging their financial strength and operational expertise in large-scale energy projects.
The divestment is not an exit but rather a recalibration designed to keep the company competitive in deregulated electricity markets like the U.S., where demand for green energy is surging.
The transaction is a strategic win for both parties. For TotalEnergies, it represents a way to reinforce balance sheet strength while scaling renewable investments.
For KKR, it offers a foothold in one of the largest solar portfolios in North America, ensuring long-term, contracted cash flows.
With this transaction, TotalEnergies continues to refine its approach to the energy transition: leveraging partnerships, recycling capital, and strengthening its position as a leader in the integrated clean power sector.
READ ALSO: Market Cheers as Ghana’s Treasury Auction Breaks Four-Week Drought with 15.8% Oversubscription
