Adani Group’s renewable arm Adani Green Energy Ltd (AGEL) and French energy giant Total SA (Total)-led joint venture (JV) company has completed another acquisition under JV agreement, through transferring 205 MW of operating solar assets for an enterprise valuation of Rs 1,632 crore.
In April this year, the two companies had formed a 50:50 JV for 2,148 MW solar power assets in India, which was setup at an enterprise valuation of Rs 17,385 crore.
With this new acquisition, an aggregate operating renewable portfolio under the JV stood at 2,353 MW of capacity.
Total, through its step-down subsidiary, invested Rs 310 crore in the JV for 50 per cent stake in the new acquisition, while AGEL had earlier announced the acquisition of these assets from Essel Group on October 01, 2020, located in the states of Punjab, Karnataka and Uttar Pradesh.
Commenting on the development, Gautam Adani, Chairman of Adani Group, said “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. This step is in line with our ambition of achieving 25 GW of renewable power capacity by 2025 and becoming the world’s largest renewable power company by 2030.”
Moreover, all the assets already have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies and the portfolio is relatively young with average remaining PPA life of approximately 21 years.
Also, the assets expand the JV’s footprint in states where it already has a presence through its existing portfolio.
AGEL, which aims to achieve 25 GW of renewable power by 2025, has 14 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties.
Total SA is an energy conglomerate that produces and markets fuels, natural gas and electricity. With 100,000 employee headcount, it is active in more than 130 countries, and it’s ambition is to become a responsible energy major.
Despite the development, scrips of AGEL were trading at Rs 719.90 apiece, down 1.09 per cent, from the previous close on the exchange at 13:01 hours.
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