TOTAL will acquire a 50% stake in Adani’s operational solar assets
Adani Green Energy Limited (AGEL) has formed a joint venture (JV) with French energy giant Total Gas and Power Business Services SAS (TOTAL). This is a 50:50 partnership through which Total will acquire 50% of Adani’s 2 GW solar energy portfolio.
Through this JV, AGEL will transfer its operational solar assets to Total. These projects span 11 Indian states. The cumulative capacity of all these projects in consideration amounts to around 2,148 MW. All these projects have been established with 25-year power purchase agreements (PPA) with national and regional electricity distribution entities. The tariffs for all projects are fixed and not subject to any fluctuation as of now.
“Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy. This interest in over 2 GW of solar projects represents another big step of our investment in India’s energy sector. It will support our ambition to contribute to the deployment of 25 GW of renewable capacities by 2025. We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market,” said Patrick Pouyanné, Chairman & CEO of Total.
The deal is still subject to regulatory clearance. The total value of the deal is expected to be $ 510 million (€ 454.3 million). This partnership is a part of Total’s goals of building a low-carbon business with higher returns. Total has projected that their renewable energy related business can rake in around 15% to 20% sales by 2040.
Total is a producer and supplier of oil, natural gas and low-carbon electricity including renewables and has a presence in 130 countries around the world. Total is committed to the clean energy transition and has conjured a goal to achieve renewable energy capacity of 25 GW by 2025 through its myriad solar and wind energy projects across the globe. In 2019, Total and Adani Group entered a partnership to contribute to the development of the Indian natural gas market.
AGEL is one of India’s biggest renewable energy companies with a project portfolio currently pegged at 5,290 MW.
Azure Power, another solar energy producer in India, had recently announced an investment of around $ 3.7 billion by the end of financial year 2024-25, that will enhance its solar energy portfolio. These moves by major conglomerates indicate that India is a ripe market for solar energy projects and the industry is growing at a steady pace.
The Indian government has set a target of achieving 175 GW renewable energy capacity in the country by 2022 and 450 GW renewable energy capacity by 2030. As ambitious as these goals seem, advancements like the Adani and Total joint venture, and other related developments clearly indicate that these ambitious goals are closer to being realized in the coming decade.
Image Credit: Pixabay
Add Comment