KKR has agreed to expand its US renewables joint venture with TotalEnergies, adding a 700MW solar portfolio valued at an enterprise value of $1.2bn. Once complete, the joint venture's capacity will rise by half, from 1.4GW to 2.1GW. Completion is expected in 2026, subject to customary conditions, with projects due to start commercial operation by the first quarter of 2027. The expansion builds on a partnership signed in September 2025, where TotalEnergies agreed to sell half of its North American solar portfolio to insurance vehicles and accounts managed by KKR.
The second transaction differs from the first in a notable respect: the original portfolio was made up of assets already in operation, while the new projects are being added before they produce power, meaning KKR is taking on some construction-stage exposure. That shift is visible in the valuation, with the first deal pricing 1.4GW at $1.25bn and the new portfolio carrying a $1.2bn enterprise value for half the capacity, made up entirely of new-build utility-scale assets. TotalEnergies aims to sell up to 50% of its renewable assets once they reach commercial operation to help reach a 12% profitability target for its integrated power business. For KKR, the venture offers a stake in contracted generation alongside an experienced operator in a deregulated US power market, while TotalEnergies retains the operating role and power marketing, with KKR providing half the capital.
Source: PE Insights · Summarized by HeadlinesBriefing