Total is expanding its partnership with Adani Group, India’s largest privately-owned energy and infrastructure conglomerate, in order to contribute to the growth of solar power generation in the country.
The Indian government has a strong policy to support renewable energy growth, intending to increase the country’s capacity from its 81 GW in 2019 to 225 GW by 2022.
Total and Adani Green Energy Limited (AGEL) 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 long term power purchase agreements (PPA) with national and regional electricity distributors, with a fixed rate.
“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,” said Patrick Pouyanné, chairman & CEO of Total.
“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.”
This transaction has a value of approximately $500m and is in line with the Group’s objective of double-digit returns on renewable projects. It remains subject to the approval of the relevant authorities.
Earlier this year, chairman of Adani Group, Gautam Adami, stated their plans to become a global force in the push to adopt green energy sources. They plan to invest over 70 percent of their budgeted capex within their energy verticle into clean energy and energy efficiency systems.