- Total SA will own half of Joint Venture in a company housing 2,148 MW of solar project.
- The deal is valued at over $500 million.
- The French giant announced a plan in October 2019 to buy 37.4% stake in Adani Gas.
French energy major Total has inked a deal with India’s energy and infrastructure conglomerate Adani Group to acquire 50% stake in solar assets for over $500 million. As part of the binding agreement, Total SA will own half of a joint venture company which will house Adani Green Energy Ltd.’s solar assets having a 2,148 MW solar project portfolio. Adani Green Energy Ltd. will hold 50% stake in the joint venture.
Chairman of Adani Group Gautam Adani was quoted expressing significance of the agreement as they strive to establish India as the world’s largest renewable power company by 2030 and the world’s largest solar power company by 2025.
For the record, this is not the first time Adani has partnered with Total SA. The French giant announced plan in October 2019 to buy 37.4% stake in Adani Gas.
Total emphasized that the Joint Venture would boost country’s capacity to 225 GW by 2022 from 81 GW in 2019. Patrick Pouyanne, CEO of Total stressed that the company is bullish of playing its role in combating climate change in India and diversifying energy mix via partnerships in natural gas and solar energy.
The CEO further added that the focus in over 2 GW of solar projects alludes a transition of scale of Total’s penetration in renewable energy sector in India. Total aims to deploy 25GW of renewable energy by 2025. The company claims that around 25-year power purchase agreements with national and regional electricity distributors will auger well for all the projects.
The deal will potentially conclude before the end of fiscal year 2020.