Total buys from Adani a 20% stake in Indian solar developer
French energy company Total announces the acquisition of a 20 per cent minority interest in Adani Green Energy Limited (AGEL) from Adani Group, India’s leading infrastructure platform.
Adani Green Energy Limited is an Indian renewable energy company headquartered in Ahmedabad, Gujarat. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.
According to the press release, the investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India. This is in line with the commitment of both companies to be leading participants in the sustainable economy of the future.
In 2018, Total and Adani partnered up with investment by Total in Adani Gas, the LNG terminal and gas marketing business. Later, the companies agreed on the acquisition of a 50 per cent stake in 2.35 gigawatt portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a global investment of $2.5 billion.
Started in 2015 with the world’s largest single-location solar power project (648 megawatts), AGEL has been ranked as the number 1 global solar power generation asset. Now, AGEL has over 14.6 gigawatts of contracted renewable capacity, with an operating capacity of 3 gigawatts and another 3 gigawatts under construction and 8.6 gigawatts under development.
The company aims to achieve 25 gigawatts of renewable power generation by 2025. The partnership with AGEL is considered to be a key contributor to Total’s objective of reaching 35 gigawatt peak of gross production capacity from renewable sources by 2025 and adding 10 gigawatt peak per year afterward.
Patrick Pouyanné, chairman and CEO of Total, 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. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas.”
Gautam Adani, Adani Group chairman, added: “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.”