AGEL Forms USD 444 Mn JV with TotalEnergies

Adani Green Energy Ltd. (AGEL) has completed a 1,150 MWac joint venture with TotalEnergies, involving a USD 444 million investment. TotalEnergies acquired a 50 percent stake in AGEL's solar projects at the Khavda renewable energy plant in Gujarat.

October 01, 2024. By EI News Network

Adani Green Energy Ltd. (AGEL) has finalised a joint venture with France-based TotalEnergies, involving a USD 444 million investment in its solar projects at Khavda, Gujarat, the world’s largest renewable energy plant.

TotalEnergies now holds a 50 percent stake in Adani Renewable Energy Sixty Four Ltd. (ARE64L), which manages a 1,150 MWac solar project portfolio. The firm said in its filing that as per the terms of the agreement, AGEL and TotalEnergies will hold equal stakes in ARE64L, each owning 50 percent of the company. The portfolio includes a mix of operational and under-development solar assets. These assets are a combination of merchant-based projects and projects backed by power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI).

The invesment is aimed at helping AGEL monetise its solar assets while maintaining operational control and unlocking further capital for its future growth. In addition to the initial investment, the agreement includes provisions for TotalEnergies to make further investments in ARE64L as its under-development projects reach commercial operation. The additional investment will be based on the book value of the projects, subject to various factors including project costs and timelines. This future funding is expected to be over and above the USD 444 million already committed, and will be contingent on necessary approvals.

AGEL and TotalEnergies will have equal representation on the company’s board, with AGEL nominating the Chairman. AGEL will retain responsibility for day-to-day operations, including the construction and development of under-construction assets. The joint venture’s board will oversee the strategy and internal controls of ARE64L and its subsidiaries.

This investment by TotalEnergies strengthens its strategic alliance with AGEL and underscores their commitment to expanding India’s renewable energy capacity. AGEL aims to become a leader in the country’s renewable energy sector, with a target of reaching 50 GW of renewable energy capacity by 2030. This partnership is a key step towards achieving that goal, aligning both companies with India's growing demand for clean energy solutions.

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World's largest RE project