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TotalEnergies Expands US Solar Joint Venture With KKR in $1.2B Deal

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TTE€78.03 −0.64%

TotalEnergies SE (TTE) has agreed to expand its 50/50 U.S. solar joint venture with investment firm KKR by adding 700 megawatts of utility-scale solar projects. The newly added portfolio represents an enterprise value of $1.2 billion and includes solar installations located in Texas and Ohio. Shares of TotalEnergies rose 1.22% to 78.53 EUR following the news.

The deal builds on an existing 1.4-gigawatt partnership between the two companies, expanding TotalEnergies' footprint in the U.S. renewable energy market. TotalEnergies will operate the facilities and market the generated power. Securing operational control and marketing rights helps reduce off-take risk and enhances revenue visibility once the power plants begin generating electricity.

The transaction is expected to close in 2026, subject to customary closing conditions. Commercial operations for the Texas and Ohio assets are scheduled to begin by the first quarter of 2027, at which point the expanded solar capacity is expected to contribute to future power production and cash flows.

Key points

  • TotalEnergies SE and KKR agreed to add 700 MW of U.S. utility-scale solar projects to their 50/50 joint venture.
  • The added solar portfolio carries an enterprise value of $1.2 billion and includes assets in Texas and Ohio.
  • TotalEnergies will operate the solar facilities and market the power produced.
  • Transaction closing is scheduled for 2026, with assets expected to go online by the first quarter of 2027.
  • The agreement expands an existing 1.4 GW renewable partnership between TotalEnergies and KKR.

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Questions and answers

What is the value of the TotalEnergies and KKR solar deal?

The 700 MW solar portfolio added to the TotalEnergies and KKR joint venture reflects an enterprise value of $1.2 billion.

Where are the new solar assets located and when will they open?

The solar assets are located in Texas and Ohio, with commercial operations expected to begin by the first quarter of 2027.

Who will manage and market power from the new TotalEnergies solar facilities?

TotalEnergies will operate the solar facilities and sell or market the electricity generated by the projects.