TotalEnergies to divest 50% stake in 1.4-GW solar portfolio in North America

TotalEnergies SE said Sept. 29 that it has agreed to sell a 50% stake in its 1.4-GW solar portfolio in North America to insurance vehicles and accounts managed by KKR & Co. Inc.

The deal puts a $1.25 billion enterprise value on the portfolio, which comprises 1.3 GW of utility-scale solar across six projects and 140 MW of distributed generation assets. Power produced by the projects has either been sold to third parties or will be commercialized by TotalEnergies, according to a news release.

TotalEnergies expects to receive $950 million at deal closing. The assets, primarily located in the US, will continue to be owned 50% and operated by TotalEnergies.

"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," Stéphane Michel, president of gas, renewables and power at TotalEnergies, said in the release.

The deal is part of the French multinational energy company's strategy to divest up to 50% of its renewable assets upon commercial operation in an effort to achieve its 12% profitability target for its integrated power business.

The transaction is subject to customary closing conditions.