Total, India's Adani Expand Partnership to Renewables
French Total February 6 said it is expanding its partnership with India’s Adani group to the renewable energy business. Last year Total picked up a stake in city gas distribution company, Adani Gas.
Total has agreed to acquire 50% in Adani Group’s solar assets for $510mn. Total and Adani Green Energy (AGEL), a unit of Adani group, will create a 50:50 joint venture into which AGEL will transfer its solar assets in operation.
These projects are spread over 11 Indian states and have a cumulative capacity of over 2 GW. All the projects benefit from nearly 25-year power purchase agreements (PPA) with national and regional electricity distributors, with a fixed rate, Total said.
“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,” Total CEO Patrick Pouyanne said.
Adani Green Energy in a separate statement said the transaction underlines the commitment to address India’s growing demand for power in a sustainable manner and help meet the country’s climate change goals.
“We are delighted to extend our long-term partnership with Total to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani group commitment towards sustainable development. This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030,” Adani group chairman, Gautam Adani, said.