KKR, an alternative asset and private equity investor, has announced an agreement to acquire a 50% stake in a portfolio of solar energy assets from TotalEnergies, with the transaction valuing the portfolio at an enterprise value of $1.25 billion. The portfolio comprises six large-scale solar projects totaling 1.3 GW and 41 smaller distributed generation sites adding another 140 MW, primarily located in the United States.
TotalEnergies is set to receive $950 million at closing, which includes proceeds from associated refinancing arrangements. Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies, expressed satisfaction with the new partnership, highlighting its alignment with the company’s strategy to unlock value from newly commissioned assets and enhance the profitability of its Integrated Power business. Michel noted the importance of entering the North American deregulated electricity market to expand their integrated business model.
Under the terms of the agreement, TotalEnergies will retain a 50% share in the assets and continue operating them. The electricity generated from these projects has either been sold under existing agreements or will be marketed by TotalEnergies. The company is in the process of building a portfolio combining renewable energy and flexible assets, such as storage and gas-fired plants, to deliver low-carbon electricity. Typically, TotalEnergies sells up to half of its renewable assets once they reach commercial operation to unlock value while managing risk. As of June 2025, TotalEnergies had reached over 30 GW of installed renewable capacity worldwide and aims to expand to 35 GW by the end of the year.
This acquisition is the latest in a series of energy transition and sustainable infrastructure-focused transactions for KKR. It follows the firm’s identification in December 2023 of decarbonisation and the large-scale “brown-to-green” transition of asset-heavy sectors as a key “mega-theme” driving investment opportunities.
Cecilio Velasco, Managing Director of KKR, acknowledged TotalEnergies as a global leader in the renewable energy industry and expressed enthusiasm for establishing the joint venture to support their renewables business. Velasco highlighted KKR’s long-standing investment in renewables through its infrastructure platform, having committed over $23 billion to date in energy transition investments. He described TotalEnergies’ North American solar portfolio as a great fit, representing high-quality renewable energy assets with long-term contracts.
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