Total Acquires Stake in India-based Solar Developer Adani Green Energy
Energy company Total announced the acquisition of a 20% stake in Adani Green Energy Limited (AGEL), one of the world’s top solar developers, from India-based infrastructure company Adani Group. Founded in 2015, AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
According to Total and Adani, the transaction marks another step in the strategic alliance between the companies, encompassing investments in LNG terminals, gas utility business, and renewable assets across India. The partnership began in 2018, with an investment by Total in Adani Gas Limited, followed up by an agreement for the acquisition by Total of a 50% stake in a 2.35 GW portfolio of operating solar assets owned by AGEL, and a 20% stake in AGEL for a global investment of $2.5 billion. Total will also have a seat on the Board of Directors of the company.
Renewables are expected to become an increasingly important energy source for citizens across India. According to the country’s Ministry of Power and New & Renewable Energy, renewable energy is estimated to comprise approximately 60% of India’s installed power capacity by 2030, from 24% today.
Patrick Pouyanné, Chairman and CEO of Total, said:
“This agreement is an important step in our alliance with the Adani Group in India and our 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.”
Adani Group Chairman, Mr. Gautam Adani, added:
“We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited. 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.”