KKR, a global investment firm, has entered into an agreement to acquire the North American renewable power businesses of Electricite de France SA (EDF), the French state-owned utility. This acquisition includes EDF Power Solutions' operations and assets in the United States and Canada, which consist of a portfolio of 5.6 gigawatts (GW) of renewable energy and storage assets. This capacity is sufficient to power over 4 million U.S. homes, making it a significant addition to KKR's growing power portfolio.
The financial terms of the transaction were not officially disclosed by EDF or KKR. However, earlier reports by Bloomberg News indicated that LS Power LLC, another contender for the assets, had been in advanced talks to purchase the unit for more than €4 billion (approximately $4.6 billion). This suggests a substantial valuation for the North American operations, reflecting the high demand for electricity assets, particularly those supporting the burgeoning artificial intelligence sector.
This sale is part of EDF's broader strategy to raise capital to fund its substantial investments in nuclear energy. The utility faces the significant cost of maintaining and upgrading France's aging fleet of 57 nuclear reactors and financing the construction of six new reactors in France and the UK, an investment expected to run into tens of billions of euros over the next two decades. This comes at a time when falling French power prices are putting pressure on EDF's balance sheet.
KKR's aggressive pursuit of these assets aligns with a larger trend of increased takeovers in the U.S. power industry, as energy producers and utilities scramble to meet the escalating demand from massive data center projects. KKR has been strategically building its power portfolio, focusing on renewables and gas assets, exemplified by its recent $10 billion acquisition of a 45% equity stake in Sempra's infrastructure arm and a deal with TotalEnergies SE valuing a North American solar asset portfolio at $1.25 billion, including debt.
The transaction is subject to consultation with employee representative bodies and requires approval from relevant governance authorities before its completion. EDF has developed approximately 26 GW of wind, solar, and battery storage projects in North America, also managing an additional 17 GW under service contracts, primarily in the U.S., with smaller portions in Canada and Mexico.
