India: Total Expands its Partnership with Adani to Renewables and Acquires 50% of a 2 GW Solar Portfolio
February 06 2020 - 3:15AM
Business Wire
Regulatory News:
As part of its strategy to develop renewable energies, Total
(Paris:FP) (LSE:TTA) (NYSE:TOT) is expanding its partnership with
Adani Group, India's largest privately-owned energy and
infrastructure conglomerate, in order to contribute to the growth
of solar power generation in the country.
Indeed, 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.
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.
“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.”
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. It remains subject to the approval of the
relevant authorities.
Total and Low-Carbon Electricity
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 gigawatts, of which over 3
gigawatts from renewable energies.
About Adani Green Energy Limited (AGEL)
AGEL is a listed company 74.92% owned by the Adani Group. As one
of the leading private players in the Indian renewables market,
AGEL currently holds a portfolio of 2,148 MW of installed solar
capacity and 172 MW of installed wind capacity. They also have 475
MW of solar capacity and 1,505 MW of wind and 990 MW of hybrid
under construction.
About Total
Total is a major energy player that produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total”, “Total Group” and
Group are sometimes used for convenience. Likewise, the words “we”,
“us” and “our” may also be used to refer to subsidiaries in general
or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
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