Total has announced expansion of its partnership with Adani Group as part of its strategy to develop renewable energies and contribute to the growth of solar power generation in the country.
The company in a statement said the Indian government has a strong policy to support the renewable energy growth. The country’s capacity should increase from its 81 gigawatts (GW) in 2019 to 225 GW by 2022.
As part of the partnership expansion plan Total and Adani Green Energy Limited (AGEL) will create a 50/50 joint venture into which AGEL will transfer its solar assets in operation. These projects are spread over 11 Indian states and have a cumulative capacity of over 2 GW.
All the projects benefit from nearly 25-year power purchase agreements (PPA) with national and regional electricity distributors, with a fixed rate.
Patrick Pouyanné, Chairman & CEO of Total said “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.”
He added “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.”
This transaction has a value of approximately $500 million and is in line with the Group’s objective of double-digit returns on renewable projects, said the company in a statement.