Total to buy 50% stake in Adani Group’s 2.1 GW solar portfolio

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As part of the deal, Total Gas & Power Business Services (Total) will buy half the stake in Adani Green Energy Limited’s 2,148 MWac solar portfolio for US$ 510 million to support their future plans. Total and AGEL will create a 50/50 joint venture into which AGEL will transfer its solar assets in operation.

The solar portfolio, currently wholly owned by AGEL, is spread across 11 states in India. All the projects benefit from fixed-tariff, long-term (nearly 25 years) power purchase agreements with national and regional electricity distributors.

“The transaction [with Total] is subject to customary approvals and definitive agreements. The transaction underlines the AGEL and Total’s commitment to address India’s growing demand for power in a sustainable manner and help meet India’s climate change goals”—read an AGEL statement.

The deal follows Adani Group chairman Gautam Adani’s recent announcement that his company’s goal is to become the world’s largest solar power company by 2025 and the largest renewable power company by 2030.

On the solar joint venture, Adani Group Chairman Gautam Adani commented; “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.”

Total Chairman and Chief Executive Officer Patrick Pouyanné said; “This interest in over 2 GW of solar projects represents a real change of scale of our presence in India’s renewable energy sector, which has very significant growth potential in the coming years. It will contribute to our ambition to deploy 25 GW of renewable energy 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.”

AGEL, part of the diversified Adani Group, is one of the largest renewable companies in India, with a current project portfolio of 6 GW including under construction capacity.

 

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