TotalEnergies, KKR Add $1.2 Billion Solar Portfolio to U.S. Renewables Joint Venture

Alternative asset and private equity investor KKR and French energy giant TotalEnergies announced today a significant expansion of their U.S.-focused renewable energy joint venture, growing their jointly held portfolio by 50% with the addition of 700 MW of utility scale solar assets across Texas and Ohio.

The transaction reflects an enterprise value of $1.2 billion for the 700 MW portfolio.

The new transaction follows the launch last year by the companies of the joint venture, through the acquisition by KKR of a 50% stake in a portfolio of solar energy assets from TotalEnergies, which included six large-scale solar projects totalling 1.3 GW and 41 smaller distributed generation sites adding another 140 MW, primarily based in the U.S.

The new assets in the portfolio include three utility-scale solar projects, which are expected to reach their commercial operation dates by the first quarter of 2027. The electricity produced by these assets is already sold to third parties or will be marketed by TotalEnergies. TotalEnergies will continue to operate the assets after completion of the transaction.

TotalEnergies is building a portfolio that combines renewable energy and flexible assets such as storage and gas-fired plants to deliver low-carbon electricity. The company typically sells up to half of its renewable assets once they reach commercial operation to unlock value while managing risk. The company holds more than 37 GW of gross renewable power generation capacity and aims to achieve over 100 TWh of net electricity production by 2030.

The announcement marks the latest in a series of clean energy infrastructure transactions by KKR, including the recent launch of a $1.3 billion renewable energy platform with South Korean industrial conglomerate SK Group, and the acquisition of EDF’s North American renewable energy business in July for $4.2 Billion.