Oil, gas, and increasingly renewable-focussed giant Total is expanding its partnership with Adani Group, India's largest privately-owned energy and infrastructure conglomerate in a 50/50 joint-venture which will see Adani transfer its solar assets currently in operation to a new joint-venture between subsidiary Adani Green Energy and Total.
These projects are spread over 11 Indian states and have a cumulative capacity of over 2GW. All the projects benefit from nearly 25-year power purchase agreements (PPA) with national and regional electricity distributors, with a fixed rate.
This transaction has a value of approximately $500 million and is in line with Total's objective of double-digit returns on renewable projects. The deal is still subject to approval from the relevant authorities.
India's government has a strong policy to support renewable energy growth. The country’s capacity should increase from its 81GW in 2019 to 225GW by 2022.
Click here for the latest smart energy news from the Indian subcontinent
“Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy," said Patrick Pouyanné, Chairman & CEO of Total.
“This interest in over 2 GW of solar projects represents another big step of our investment in India's energy sector. It will support our ambition to contribute to the deployment of 25 GW of renewable capacities by 2025. We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market.”
Total's gross low-carbon power generation capacity worldwide is currently close to 7 gigawatts, of which over 3 gigawatts from renewable energies.
The energy transition and renewable energy are hot topics disrupting the utility industry in India and will be a key focus at the POWERGEN INDIA and Indian Utility Week summit which takes place in New Delhi this May. For more details visit https://www.powergen-india.com/ or indian-utility-week.com