TotalEnergies Secures $950M in Solar Portfolio Sale to KKR
TotalEnergies has agreed to a significant deal, expecting to receive $950 million from the sale of a stake in its renewable energy portfolio. The transaction marks a new joint venture with KKR, strengthening both companies' positions in the clean power sector.
The portfolio in question consists of six utility-scale solar farms totalling 1.3 GW and 41 distributed generation projects delivering 140 MW. All projects are either contracted through power purchase agreements or will be commercialized by TotalEnergies, ensuring a steady revenue stream.
TotalEnergies' strategy is evident in this move, balancing growth with profitability by monetizing newly commissioned, de-risked assets. The company continues to pair asset monetization with operational control, retaining a 50% operating stake and managing the assets. This approach allows TotalEnergies to generate cash while still benefiting from the projects' long-term growth potential.
The U.S. is emerging as one of TotalEnergies' fastest-growing free portfolio sites, driven by federal tax credits and state-level demand for clean electricity. This deal, valuing the portfolio at $1.25 billion, further cements TotalEnergies' commitment to the region.
TotalEnergies' sale of a 50% stake in its U.S. solar portfolio to KKR underscores the company's strategic approach to renewable energy. By balancing asset monetization with operational control, TotalEnergies generates immediate cash while maintaining long-term growth prospects. Meanwhile, KKR strengthens its renewable portfolio and gains exposure to a global player with proven development capabilities.
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