Total expands partnership with Adani to renewables in India
As part of its strategy to develop renewable energies, Total is expanding its partnership with Adani Group, an Indian energy and infrastructure conglomerate, in order to contribute to the growth of solar power generation in the country.
The Indian government has a strong policy to support the renewable energy growth. The country’s capacity should increase from its 81 GW in 2019 to 225 GW by 2022.
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.
This transaction has a value of approximately US$500 million and is in line with the Group’s objective of double-digit returns on renewable projects. It remains subject to the approval of the relevant authorities.
Total integrates climate change into its strategy and is staying ahead of new energy market trends by building a portfolio of low-carbon businesses that could account for 15 to 20% of its sales by 2040. Total’s gross low-carbon power generation capacity worldwide is currently close to 7 GW, of which over 3 GW is from renewable energies.
Source: Energy Global