HedgeCo.Net — KKR and TotalEnergies have signed an agreement to add 700 megawatts of U.S. solar capacity to the 50/50 joint venture the two formed in the United States in 2025. The partnership currently holds 1.4 gigawatts, so the addition would lift its portfolio by half, to roughly 2.1 gigawatts.
The transaction covers three utility-scale solar assets in Texas and Ohio that are expected to reach commercial operation by the first quarter of 2027. The companies said the deal reflects an enterprise value of $1.2 billion for the portfolio.
The electricity the projects produce has either already been sold to third parties or will be marketed by TotalEnergies, which will continue to operate the assets after the transaction closes. Completion is expected in 2026, subject to customary conditions.
The structure is a familiar one for infrastructure investors: an operator recycles capital by selling down half of a de-risked, contracted portfolio, while a private capital partner gains exposure to power generation without taking on construction or operating responsibility. For KKR, it extends an existing relationship rather than starting a new one, and the near-term commercial operation dates shorten the path to cash yield.
For allocators, the deal is another data point on how private infrastructure capital is being deployed into U.S. power at a time when electricity demand is a central investment theme. Pricing of $1.2 billion for 700 megawatts of contracted and near-complete solar gives a useful marker for valuations on similar portfolios as sponsors and energy majors continue to trade stakes in generation assets.