Adani Green, TotalEnergies sign 1,150 MW AC joint venture agreement

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Adani Green Energy Ltd (AGEL) announced this week the signing of a joint venture agreement with TotalEnergies for a 1,150 MW AC portfolio. This portfolio comprises a mix of already operational and under development solar assets.

As part of the JV, TotalEnergies invested $444 million in AGEL subsidiary, Adani Renewable Energy Sixty Four Ltd (ARE64L), for acquiring 50% stake in AGEL’s solar projects located at the world’s largest renewable energy plant in Khavda, Gujarat.

“With the execution of the agreement, AGEL and TotalEnergies own a 50:50 stake in Adani Renewable Energy Sixty Four Ltd (ARE64L), which houses a 1,150 MW AC project portfolio [comprising both operational and under-execution assets],” stated AGEL.

Upon the under-development projects achieving commercial operations, TotalEnergies will invest an additional amount to be determined based on book value subject to certain parameters around the project cost and timelines. “Such further funding by TotalEnergies will be over and above the initial investment of approx. $444 million and will be subject to suitable approvals as may be required,” stated AGEL.

Under the agreement, AGEL will have the overall responsibility for day-to-day operation and management of ARE64L and the project portfolio company. It will also undertake construction and development of the under-development assets.

TotalEnergies’ initial investment of $444 million will help AGEL in monetization of its assets while retaining the control and also unlocking capital for future growth of the company.

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