TotalEnergies has agreed to sell a 50% stake in a more than 1GW solar portfolio in North America to insurance vehicles and accounts managed by KKR.
The deal values the portfolio at $1.25bn and will see TotalEnergies receive $950m at closing, including proceeds from bank refinancing currently being finalised.
The transaction covers six utility-scale solar assets totalling 1.3GW and 41 distributed generation projects with a combined capacity of 140MW, primarily in the US. Electricity output has either been contracted to third parties or will be marketed by TotalEnergies.
The French developer will retain a 50% interest and continue to operate the assets once the deal closes, subject to customary conditions.
Stéphane Michel, president of gas, renewables and power at TotalEnergies, said the transaction “unlocks value from newly commissioned assets and further strengthens the profitability” of its integrated power business.
KKR managing director Cecilio Velasco said the portfolio represents “high-quality renewable energy assets with long-term contracts”.
TotalEnergies said the sale is consistent with its integrated power strategy, which targets a 12% return by divesting up to half of renewable assets once they reach commercial operation.