KKR and TotalEnergies to add 700 MW of solar to US joint venture

KKR and TotalEnergies announced on Oct. 12 that they are expanding their U.S. renewable energy joint venture by 700 MW of utility-scale solar across Texas and Ohio. The addition grows the portfolio the partners hold together by 50%.

The transaction reflects an enterprise value of $1.2 billion for the 700 MW portfolio, ESG Today reported. The electricity produced by the three new utility-scale projects is already sold to third parties or will be marketed by TotalEnergies, which will continue to operate the assets after the transaction completes.

The new projects are expected to reach their commercial operation dates by the first quarter of 2027. The joint venture launched last year, when KKR acquired a 50% stake in a portfolio of solar assets from TotalEnergies.

That base comprised six large-scale solar projects totaling 1.3 GW and 41 smaller distributed generation sites adding 140 MW, primarily in the U.S. Set against those roughly 1,440 MW, the 700 MW addition works out to 48.6% growth; the companies cited 50%, and the coverage does not reconcile the two figures.

TotalEnergies typically sells up to half of its renewable assets once they reach commercial operation, a practice the company describes as unlocking value while managing risk. It holds more than 37 GW of gross renewable power generation capacity and targets more than 100 TWh of net electricity production by 2030. KKR's recent clean energy infrastructure transactions include the launch of a $1.3 billion renewable energy platform with South Korean conglomerate SK Group, and the acquisition of EDF's North American renewable energy business in July for $4.2 billion.