Did you know that one of the fastest-growing energy investment strategies today is asset recycling in renewables? Energy giants are increasingly opting to sell part of their mature clean energy assets to fund fresh projects while retaining operational control. A striking example of this approach is the recent move by TotalEnergies, which announced on September 29, 2025, that it will sell a 50% stake in a ~1.4 GW solar portfolio in the US to KKR in a deal valued at $1.25 billion. This strategic transaction not only demonstrates how companies are maximizing returns but also reflects the growing investor appetite for clean energy infrastructure.
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The transaction represents a significant milestone for TotalEnergies as it continues to pursue its renewable business model of divesting up to 50% of de-risked, commissioned assets. With the bank refinancing in process, the company expects to secure $950 million, including $625 million in equity value and $275 million in debt. Importantly, TotalEnergies will retain a 50% ownership stake while continuing to operate the solar assets post-closing. This balanced approach ensures that the company unlocks value from the assets while still benefiting from long-term revenues. For KKR, the investment adds another feather to its extensive energy transition portfolio, where it has already committed over $23 billion.

This deal shines a spotlight on the strategic importance of North America in TotalEnergies’ integrated power ambitions. As one of the most dynamic deregulated electricity markets, the US offers fertile ground for companies seeking to scale their renewable footprint. The ~1.4 GW portfolio being transferred to the joint venture comprises six utility-scale solar farms with 1.3 GW of capacity and 41 distributed generation projects totaling 140 MW. These assets have been structured with secured power purchase agreements or will be commercialized directly by TotalEnergies, ensuring reliable cash flows. For both partners, the move cements their commitment to accelerating clean energy deployment in the region.

Beyond financial structuring, this deal reflects a broader trend: the growing emphasis on profitability and capital recycling in the renewable sector. By monetizing half of its de-risked solar assets, TotalEnergies not only boosts returns but also creates fresh capital to reinvest in new clean energy projects. For KKR, the move adds long-term, stable infrastructure assets to its portfolio, aligning with investor demand for energy transition plays. Together, the partnership sets a strong precedent for how traditional energy majors and global investors can collaborate to drive decarbonization at scale.

This $1.25 billion transaction between TotalEnergies and KKR underscores a crucial shift in the renewable energy landscape: it’s no longer just about building capacity, but about strategically managing assets to fuel sustainable growth. With North America emerging as a central pillar of clean energy expansion, this partnership highlights the future of renewables as a balance of innovation, investment, and operational excellence.

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