
- Green Tech
TotalEnergies Expands Caribbean Renewables with AES Deal
5 minute read

Caribbean renewable energy investments expand as TotalEnergies adds 1 GW portfolio to advance regional clean power transition
Key Takeaways
- TotalEnergies acquires 50% stake in AES renewable portfolio — French energy giant completes acquisition of over 1 GW of renewable energy and battery storage assets in Dominican Republic
- Combined Caribbean capacity exceeds 1.5 GW — Portfolio includes wind, solar, and battery storage projects with 410 MW operational or under construction and 500+ MW in development
- Strategic LNG supply agreement secured — 15-year deal for 400,000 metric tons annually starting 2027 to support 470-MW combined-cycle power plant construction
Introduction
TotalEnergies SE has strengthened its Caribbean energy footprint through the acquisition of a 50% stake in AES Corp.’s renewable energy and battery storage portfolio exceeding one gigawatt in the Dominican Republic. The transaction expands TotalEnergies’ regional presence beyond its existing 30% stake in AES’ Puerto Rico renewables portfolio acquired in 2024.
The deal positions TotalEnergies as a leading renewable energy provider in a region characterized by high electricity prices and ambitious decarbonization targets. The combined assets now represent over 1.5 GW of renewable energy and battery energy storage system capacity throughout the Caribbean.
Key Developments
The Dominican Republic portfolio comprises wind, solar, and battery storage ventures with 410 MW currently operational or under construction. An additional 500+ MW in wind and solar projects remain in development, with battery storage systems designed to integrate with solar installations to address intermittency challenges.
TotalEnergies already operates significant infrastructure in the Dominican Republic, including a 103-MW solar plant under construction and a network of 184 service stations. The company also manages natural gas distribution services in the country.
The acquired AES portfolio includes 485 MW of contracted solar and battery storage projects, featuring 200 MW of solar capacity and 285 MW/1,140 MWh of battery storage currently under construction. These projects will supply electricity through long-term power purchase agreements.
Market Impact
The acquisition advances TotalEnergies toward its target of 35 GW of gross renewable generation capacity by 2025 and over 100 TWh of electricity production by 2030. The company currently maintains 28 GW of installed capacity as of the first quarter of 2025.
Industry analysts view the transaction as strategically significant for Caribbean renewable development. The backing from TotalEnergies and structure of long-term PPAs enhances investor confidence and attracts additional capital to the region.
The Caribbean’s renewable electricity penetration has reached 12%, with regional targets calling for 47% by 2027. The integration of storage with renewable generation addresses grid reliability concerns while supporting the transition from imported fossil fuels to locally generated clean energy.
Strategic Insights
TotalEnergies pursues a multi-energy strategy that combines renewable sources with flexible energy assets including combined cycle gas turbines and storage systems. This approach creates a balanced portfolio designed to address the region’s energy security needs while supporting decarbonization objectives.
The company’s Caribbean expansion leverages existing infrastructure and relationships, including LNG supply arrangements with AES subsidiaries in Panama and the Dominican Republic since 2018. This integrated approach supports operational efficiency and market penetration.
A complementary LNG supply agreement with Energia Natural Dominicana secures 400,000 metric tons annually for 15 years beginning in 2027. This supply will support a 470-MW combined-cycle power plant currently under construction, demonstrating TotalEnergies’ commitment to providing both renewable and transitional energy solutions.
Expert Opinions and Data
Stephane Michel, TotalEnergies’ president for gas, renewables, and power, emphasized the strategic value of the AES partnership. “These new transactions will contribute to our targets of 35 GW of gross renewable capacity by 2025 and over 100 TWh of electricity production by 2030,” Michel stated.
Juan Ignacio Rubiolo, AES executive vice president and president for Energy Infrastructure, highlighted the reinvestment strategy. “We are excited to join forces with TotalEnergies as we diversify the island’s energy mix. The proceeds from this transaction will be reinvested in AES Dominicana, to grow our renewables footprint,” according to Rigzone.
The partnership structure allows AES to maintain operational involvement while securing capital for further renewable development. This model supports continued growth in regional renewable capacity while providing TotalEnergies with established market access and operational expertise.
Conclusion
TotalEnergies’ expanded Caribbean presence through the AES partnership establishes a foundation for regional renewable energy leadership. The company’s integrated approach combining renewable generation, storage, and traditional energy services positions it to address diverse market needs while supporting decarbonization objectives.
The transaction demonstrates how strategic partnerships can accelerate renewable energy deployment in markets with high electricity costs and ambitious climate targets. TotalEnergies now controls a diversified Caribbean energy portfolio capable of supporting the region’s transition to cleaner energy sources while maintaining grid reliability through advanced storage integration.