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Adani Green Energy and TotalEnergies SE have signed a term sheet to form a new equal joint venture in which the French energy company will invest $300 million, and the Adani company will be contributing its assets.
The new JV will have a 1,050 MW of energy portfolio of which 300 MW are operational, 500 MW are under construction, and 250 MW are under development. These will be primarily solar and wind power assets.
TotalEnergies said that with this transaction it would “reinforce its strategic alliance with AGEL and support the company in becoming the Indian leader of renewable energy, with a target of 45 GW renewable power capacity by 2030.” The French energy major holds about 19.75 per cent stake in Adani Green.
The agreement between the companies also involves modifying the terms of investment in Adani Green Energy Twenty-Three, an existing JV between Adani Green and TotalEnergies.
TotalEnergies has been active in India’s renewable energy segment mainly through AGEL. It sees India’s renewable energy market as an “interesting market by its size and growth and the early development of a merchant market”. The first JV was formed in 2020 and it acquired shares in AGEL in 2021. It expects the new JV to speed up its development “through direct access to a large portfolio of assets.”.
TotalEnergies also holds slightly over 37 per cent stake in Adani Total Gas.
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