KKR acquires 50% stake in TotalEnergies renewables portfolio

KKR has agreed to acquire a 50% interest in a European renewable energy portfolio owned by TotalEnergies in a transaction valuing the assets at €1.8bn, further expanding the private equity firm’s renewable infrastructure investments, according to a report by Bloomberg.

The investment will be made through an insurance account managed by KKR and adds to a series of renewable energy transactions completed by the firm this year across Europe, North America and Asia.

The portfolio comprises operational and under-construction onshore wind and solar assets across Europe. Electricity generated by the projects is either already being sold to third-party customers or will continue to be marketed by TotalEnergies following the transaction.

The deal forms part of TotalEnergies’ long-standing strategy of recycling capital by selling minority stakes in completed renewable energy assets while retaining an ongoing role in their operation. The approach allows the company to crystallise value and reinvest proceeds into new clean energy developments.

The agreement was announced alongside TotalEnergies’ acquisition of Shell’s European onshore renewables business, which includes around 500MW of operational and under-construction wind and solar projects, primarily in Italy and the Netherlands, together with a 3.5GW development pipeline spanning Italy, the UK and Spain.

The transactions highlight contrasting strategies among Europe’s major energy companies. While several oil and gas groups have moderated their renewable energy ambitions in response to weaker returns, TotalEnergies continues to expand its low-carbon power portfolio through a combination of acquisitions, project development and capital recycling.