TOTAL France, a global energy major, will pick up a 20 per cent stake in Adani Green Energy Ltd (AGEL), the renewable power company of Adani Enterprises, by way of acquisition of shares held by the Adani Promoter Group (APG).
This is the second partnership between TOTAL and an Adani group company. In 2018, TOTAL acquired a 37.4 per cent stake in Adani Gas Limited and a 50 per cent stake in Dhamra LNG project. The JV entailed developing various regasification terminals including Dhamra LNG and a retail network of 1,500 service stations over a period of 10 years.
As part of the current deal, TOTAL will pick up a 50 per cent stake in a 2.35 GW portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a global investment of $2.5 billion, said a statement by AGEL.
Patrick Pouyanne, TOTAL SE CEO said, “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties, which began with our first joint venture 2.3GW of renewable capacity. Given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars: renewables and natural gas."
In February 2020, TOTAL and AGEL created a 50-50 joint venture at an enterprise value of Rs 17,385 crore, into which AGEL would transfer its operational solar assets. The total operating renewable portfolio under the JV stands at 2.3 GW.
“We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030,” Gautam Adani, chairman, Adani Group said in a public statement.
AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
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