French supermajor Total has expanded its solar energy joint venture in India with Adani Green Energy Ltd (AGEL), a renewable energy subsidiary of multinational conglomerate Adani Group.
Total acquired a 50% stake in AGEL earlier this year in a $500 million deal, which included AGEL’s portfolio of power plants, with a total capacity of 2.1 gigawatts.
Total revealed on Thursday that the pair have agreed to expand the portfolio to 2.3GW, with the addition of new solar farms.
AGEL confirmed in a separate release that Total will pay 3.1 billion rupees ($42.3 million) for a 50% share in assets it acquired from Essel earlier this month in Punjab, Karnataka and Uttar Pradesh, with a combined capacity of 205 megawatts.
India 'one of most attractive markets'
All the assets have long term power purchase agreements with various state electricity distribution companies, with a remaining average term of about 21 years.
“India continues to be one of the most attractive markets for clean energy globally. We are delighted to expand our partnership with Total and are committed to grow our renewables JV platform with them,” Adani Group chairman Gautam Adani said.
“This step is in line with our ambition of achieving 25GW of renewable power capacity by 2025 and becoming the world’s largest renewable power company by 2030.”
Total noted the deal was in line with its objective of double-digit return on equity for renewable projects.
"With an ambitious target of 175GW of installed capacity by 2022, India is a strong growth area for renewable energy,” said Total chief executive Patrick Pouyanne.
“Since last year, the group has strengthened its commitment in India with around 5GW of solar projects in the country, in line with its ambition to become a world leader in renewable energies."
It also falls in line with the French company’s ambition to have net-zero emissions by 2050, at which point the traditional oil and gas player anticipates activities in electricity, and particularly renewables, to account for up 40% of its sales.