KKR and TotalEnergies plan $1.2B expansion of US solar joint venture

KKR and TotalEnergies plan to expand their U.S. solar joint venture through a $1.2 billion portfolio transaction, ESG News reported on Oct. 12. The deal would add 700 megawatts across three utility-scale projects in Texas and Ohio, and the partners would keep their 50-50 ownership split.

The addition would lift the partnership's combined solar capacity to roughly 2.1 gigawatts from 1.4 GW, a 50% increase. The companies expect to complete the transaction during 2026, subject to customary closing conditions, and all three facilities are scheduled to begin commercial operations by the first quarter of 2027.

At the portfolio level, the $1.2 billion enterprise value works out to about $1.7 million per megawatt of capacity for the 700 MW being added. ESG News reports the companies have not disclosed individual project valuations, financing arrangements, the debt-and-equity split, or how the 700 MW divides between Texas and Ohio.

TotalEnergies would continue operating the three solar facilities after the transaction completes. Electricity from them has either been contracted for sale to third-party customers or will be marketed directly by TotalEnergies, according to ESG News, leaving a mix of contracted revenue and wholesale power price exposure. ESG News reports the companies have not said what proportion of generation is covered by existing agreements, how long those agreements run, or who the buyers are.