The acquisition brings TotalEnergies' renewable energy portfolio in the US to over 25GW.
CEG is the fifth largest renewable energy company in the United States and operates 7.7GW of renewable energy projects through its publicly traded subsidiary Clearway Energy Inc. (CWEN, in which CEG owns 42% of CWEN) and owns 25GW of green power and storage projects plan, of which 15GW is in the late stages of development.
TotalEnergies is a 50% stake in Clearway Energy Group (CEG) acquired from Global Infrastructure Partners (GIP).
The transaction is TotalEnergies' largest renewable energy acquisition in the United States.
GIP will receive $1.6 billion in cash, minus a 50 percent stake in the TotalEnergies subsidiary, which holds a 50.6 percent ownership of SunPower.
TotalEnergies will help boost Clearway's growth prospects by providing power trading capabilities to CWEN and will prioritize the development of the company's planned projects.
In the large-scale solar PV space, TotalEnergies already has 8GW of projects in development following its acquisition of SunChase's portfolio, its partnership with Hanwha Energy and its recent acquisition of Core Solar.
In addition, TotalEnergies will develop 4GW of offshore wind farms off the coast of New York and North Carolina following a lease awarded in a recent tender.
And GIP will get an equity partner in SunPower, the second-largest residential solar company in the United States.
TotalEnergies chairman and CEO Patrick Pouyanne said the cash and equity deal with GIP enables TotalEnergies to expand in the U.S. market. The U.S. is one of the most dynamic markets in the world, and companies will benefit from operating assets and 25GW of high-quality wind, solar and energy storage projects. The deal is fully in line with the company's strategy to grow, even as renewable electricity, along with LNG, is one of the company's main growth drivers.