Global energy major Total has announced the acquisition of a 20 per cent minority interest in Adani Green Energy Ltd (AGEL) from the Adani group. The transaction marks the deepening partnership between the Adani group, India’s leading infrastructure platform, and Total, which is in the transition and green energy fields in India. The investment in AGEL strengthens 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 the Adanis and Total to be leading participants in the sustainable economy of the future and help India in its quest for development of renewable energy. In 2018, Total and Adani had embarked on the energy partnership with an investment by Total in Adani Gas’ city gas distribution business, associated LNG terminal business and gas marketing business. During the development of this partnership, it was further agreed that they both would continue this alliance into the wider renewable energy space. Both agreed upon the acquisition of a 50 per cent stake in a 2.35 GW portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a total investment of $2.5 billion. Along with this 20 per cent minority interest in AGEL, Total will have a seat on the board of directors of the company too. AGEL’s projects benefit from the nearly 25-year-old power purchase agreements (PPA) with national and regional electricity distributors, at a fixed rate. Total and AGEL will create a 50:50 joint venture, into which AGEL will transfer its solar assets in operation. These projects, spread over 11 Indian states, have a cumulative capacity of over 2 GW. Major milestone “This agreement is an important step in our alliance with the Adani group in India,” says Patrick Pouyanné, chairman & CEO, Total. “We have a common vision and goals with respect to the importance of access to low carbon energy in India. 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”. “We are delighted to deepen our strategic alliance with Total, a global energy major, and welcome them as a significant shareholder in AGEL,” says Gautam Adani, chairman, Adani group. “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 of 450 GW renewable energy by 2030”.
-
Both agreed upon the acquisition of a 50 per cent stake in a 2.35 GW portfolio of operating solar assets owned by AGEL
