The investment in AGEL is another step in the strategic alliance between Adani Group and Total across various businesses and companies of the Adani Group
The Adani Group said on Monday that France-based Total will acquire 20% minority interest in Adani Green Energy Ltd (AGEL).
The investment in AGEL is another step in the strategic alliance between Adani Group and Total across various businesses and companies of the Adani Group, covering investments in liquefied natural gas (LNG) terminals, gas utility business, and renewable assets across India.
"This is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and help India in its quest for development of renewable energy," the Adani Group said.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Ltd's city gas distribution business, associated LNG terminal business, and gas marketing business.
Total acquired 37.4% stake in Adani Gas Ltd and 50% stake in Dhamra LNG project. It was agreed that Total and Adani will continue this alliance into the wider sustainable energy space.
Total and Adani agreed to the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $2.5 billion.
"We are delighted to deepen our strategic alliance with Total, a global energy major, and welcome it as a significant shareholder in AGEL," Adani Group chairman Gautam Adani said.
"We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India's vision for 450 GW renewable energy by 2030," he said.
Total SE's chieef execitive officer Patrick Pouyanne said the agreement is an important step in the alliance with the Adani Group in India and with regard to the common vision and goals concerning the importance of access to low carbon energy in India.
Total's entry into AGEL is a major milestone in its strategy regarding the renewable energy business in India put in place by both companies, which began with the first joint venture of 2.3 GW of renewable capacity.
"Given the size of the market, India is the right place to put this into action and to deploy our energy transition strategy based on two pillars: renewables and natural gas," he said.
India has a policy target of setting up 450 GW of renewable power capacity by 2030, driven by the vision of Prime Minister Narendra Modi. Starting with his commitment to the Paris Agreement in 2015 and reinforcement at the 2019 United Nation Climate Action Summit, India has been at the forefront of the global fight against climate change.
In this context, Adani Group and Total have joined hands to develop green power sources at affordable prices and to deliver this transformational energy solution.
As on date, AGEL has more than 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development.
The company aims to achieve 25 GW of renewable power generation by 2025 and is committed to contributing meaningfully to India's COP21 goals and to the wider United Nations Framework Convention on Climate Change goals of sustainability.