Monitoring Analytics submits comments on EDF-KKR acquisition

On October 13, 2026, Monitoring Analytics, an independent market monitor for the PJM electricity market, submitted comments to the Federal Energy Regulatory Commission (FERC) in the case EC26-151. This case concerns KKR’s proposed acquisition of EDF’s renewable energy activities in the United States and Canada, which Monitoring Analytics describes as EDF’s renewable operations in North America.

Conditions for approval requested

The monitor recommends that the FERC approve the transaction only if KKR commits to maintaining the capacity and energy of EDF’s assets located in the PJM area within the PJM markets. This is not a final decision but the opinion of a party involved in the case; the FERC will make the final call.

Request echoes previous rejection

The monitor also requests that the Commission require KKR to maintain the capacity of the EDF assets, a condition the FERC had previously rejected in another acquisition, that of a power plant in Maryland by TeraWulf. The difference between the two cases lies in a specific criterion, making the EDF-KKR transaction a test case.

EDF's agreement to sell renewable assets

On June 30, 2026, EDF announced the signing of an agreement to sell 938 MW of renewable energy capacity to Amazon, Microsoft, and another electricity company. The value of the shares is approximately 4.2 billion dollars, with up to 0.39 billion in price supplements. The transaction is expected to reduce EDF’s net financial debt by about 5.5 billion dollars.

Details of the ceded scope

In the PJM area, the ceded scope represents 938 MW, distributed among four project companies. Monitoring Analytics’ submission details three of them: Fox Squirrel, Kelly Creek, and Pilot Hill. These projects include solar and wind power plants with long-term power purchase agreements.

KKR's role in data centers and energy

KKR is an electricity buyer and data center builder. It co-owns CyrusOne with Global Infrastructure Partners and has launched Helix Digital Infrastructure with several partners. KKR is also among the financiers of NVIDIA’s AI computing infrastructure program.

Existing KKR energy holdings in PJM

In production, KKR is already affiliated with 143 MW in PJM, including two solar power plants held 50% with TotalEnergies. It plans for an additional 400 MW, though the exact location is unknown. TotalEnergies recently announced the addition of 700 MW of solar in Texas and Ohio to its joint venture with KKR.

Monitor warns of reduced competition

According to the monitor, removing power plants from the market to supply KKR’s data centers could make PJM markets “less competitive” and increase costs for other customers. The approval application does not clarify whether KKR intends to use this capacity directly or leave it on the market.

Previous case and its outcome

In a previous case, EC26-58, the FERC approved TeraWulf’s acquisition of a power plant in Maryland without requiring the company to maintain the capacity in the PJM market. The Commission determined that TeraWulf had no existing power plants in the area to create an incentive for removing the capacity.

PJM's capacity market in deficit

According to the PJM report on the 2028/2029 capacity auction, the total committed capacity is significantly less than the reliability requirement. The reserve margin is 14.4%, below the target of 20%, and all prices have reached the ceiling of 325 dollars per MW and per day.

PJM tariff and regulatory challenges

The PJM tariff does not explicitly address the removal of power plants for data centers. Monitoring Analytics contests the position of PJM staff that the rules for shutting down power plants do not apply in this case. The monitor advocates for a case-by-case approach, citing a 1996 FERC precedent.

Multiple acquisition cases under review

As of October 14, Monitoring Analytics has submitted comments on sixteen transaction approval cases since January. In several of these cases, the monitor’s position is harsher than in the EDF-KKR case. Each acquisition of power plants in PJM by a data center investor now raises similar regulatory concerns.

EDF's focus on approval conditions

For EDF, the primary issue is the schedule and conditions attached to the approval of the transaction. The monitor argues that the commitment would not affect the applicants if they have no intention of removing the capacity. The applicants have not provided information on how such a commitment would affect their projects.