Adani Green and TotalEnergies Forge $444 Million JV in Renewable Energy

27 Sep 2024 , 04:04 PM

Adani Green Energy Ltd (AGEL) announced a joint venture agreement with French energy company TotalEnergies on September 26, 2024, to enhance renewable energy efforts in India.

The agreement involves TotalEnergies investing approximately $444 million for a 50% stake in Adani Renewable Energy Sixty Four Limited (ARE64L).

ARE64L boasts a significant portfolio of 1,150 MWac solar projects situated at the Khavda renewable energy plant, the largest of its kind globally.

This partnership results in an equal ownership structure of ARE64L between AGEL and TotalEnergies, fostering collaborative growth in the renewable energy sector.

The joint venture will allow the management of various solar assets, encompassing both operational and developmental projects, including merchant-based initiatives and those backed by power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI).

The joint venture was approved by AGEL’s shareholders during an extraordinary general meeting on September 25, 2024.

TotalEnergies has signaled intentions for additional funding once the under-development projects reach commercial operation, with investment amounts determined by project book value and cost parameters beyond the initial $444 million investment.

This strategic collaboration aims to boost operational capabilities and contribute significantly to India’s renewable energy landscape.