April 30 (Reuters) - PG&E said on Tuesday it had entered into exclusive negotiations to sell a minority interest in Pacific Generation to KKR & Co's unit, as the utility firm seeks funding to improve its energy grid.

PG&E has been blamed for sparking numerous wildfires, including some of California's most deadly, and has been making investments to improve the reliability of its power grid.

"We believe an investment from KKR would immediately enhance our financial position as we continue our pursuit of a clean energy future," CFO Carolyn Burke said.

The Oakland, California-based company had moved to separate its non-nuclear generation assets in 2022 into a standalone unit called Pacific Generation, which is estimated to be worth $3.5 billion and had been seeking regulatory approval to sell a stake of up to 49.9% in the unit.

The utility firm said under proposed transaction, PG&E would remain a majority owner and operator of Pacific Generation. (Reporting by Tanay Dhumal and Deborah Sophia in Bengaluru; Editing by Anil D'Silva)