Total to invest $510 mn in JV with Adani Green Energy
AGEL had entered into a binding arrangement with Total Gas & Power Business Services
French oil major Total will make an investment of $510 million for a 50% stake in 2,148 MW solar capacity owned by Adani Green Energy (AGEL).
AGEL had entered into a binding arrangement with Total Gas & Power Business Services for an investment of approximately $510 million for acquisition of 50% stake and other instruments in a joint venture (JV) company.
The JV will house 2,148 MW of operating solar projects -- presently 100% owned by AGEL. The balance 50% in the JV will be held by AGEL. The solar portfolio is spread across 11 states in India. The deal is expected to be complete before the end of FY20.
AGEL looks to utilise the funds generated from the deal for equity funding of new projects. The 2,148 MW portfolio is AGEL’s total operating portfolio in solar energy. The company has another 475 MW solar capacity under construction. In the wind energy space, AGEL has an operational portfolio of 347 MW.
The company aims to operate 15 GW of renewable energy portfolio by 2025. In October 2019, Total signed a definitive agreement to acquire 37.4% stake in AGEL for Rs 5,700 crore. The deal is to be executed in two parts and is expected to be completed by March 2020.
For Total, the investment is a step towards meeting its own goal of 25 GW as a renewable energy portfolio by 2025.