The two partners agreed to the acquisition of a 20% stake in AGEL for an investment worth $2.5 billion. With this 20% minority interest in Adani Green Energy, Total will also have a position on the board of directors of Adani Green Energy, Total said in a statement.
In February 2020, Total had entered into an agreement with AGEL to acquire a 50% stake in the joint venture company. The agreement was intended to lead to the transfer of 2.1 GW of AGEL’s operating solar assets to the new joint venture company. AGEL owned the remaining 50% stake. Later in October 2020, AGEL added 205 MW of operational solar projects worth ₹16.32 billion (~$222.9 million) to expand the portfolio of its joint venture to 2.35 GW.
The transaction will help strengthen the partnership between the Adani Group and Total in India’s green energy field. The partnership covers investments in liquified natural gas terminals, gas utility business, and renewable assets across India. The two partners also agreed to carry on this alliance into wider renewable energy space.
Total said that the partnership with AGEL in the renewable sector in India would be a key to achieve its aim to reach 35 GW of renewable energy capacity by 2025, and adding 10 GW annually afterward.
Patrick Pouyanne, Chairman and Chief Executive Officer 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, Chairman of Adani Group, said, “We are delighted to deepen our strategic alliance with Total and welcome them as a significant shareholder in AGEL.”
According to Mercom’s India Solar Project Tracker, Adani Green Energy has 2.4 GW of operational solar projects and a 10 GW of solar capacity in the pipeline.
The company was also rated as the top solar developer in the world based on its operational, under construction, and awarded projects, according to Mercom’s Global Large-Scale Solar PV Developers Report. According to the report, the company had a portfolio of 12.3 GW of solar projects under different stages of execution.
Harsh is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.