TotalEnergies has agreed to invest $444m in a proposed joint venture (JV) with Indian renewable energy company Adani Green Energy (AGEL) to manage a portfolio of solar projects with a total capacity of 1.15GW.
In line with this, AGEL, Adani Renewable Energy Sixty Four (ARE64L), and TotalEnergies Renewables Singapore will sign definitive agreements. TotalEnergies owns 19.75% stake in AGEL.
The projects under the new 50-50 JV will be a mix of operational and under-execution solar assets, with a blend of both merchant and power purchase agreement (PPA) based projects. These are located at the renewable energy plant in Khavda, Gujarat.
Through the commitment, both parties aim to accelerate India’s transition to clean energy.
The electricity produced from the solar projects in the JV will be sold through PPAs with the Solar Energy Corporation of India (SECI) and through wholesale market sales.
Being developed on a vast wasteland at Khavda, the renewable energy plant covers an area of 538km2. AGEL has already operationalised a cumulative capacity of 2.25GW of solar and wind energy at the site.
Upon its completion, the renewable energy plant is expected to provide clean energy to more than 16 million households in India. It is also estimated to prevent approximately 58 million tonnes of carbon dioxide emissions per year.
Besides, the renewable energy project is anticipated to create more than 15,200 green jobs.
The signing and closing of the transaction are contingent upon customary conditions, including regulatory approvals.
Last year in December, AGEL announced the completion of the 1.05GW JV with TotalEnergies. TotalEnergies invested $300m in AGEL subsidiary for acquiring a 50% stake in the solar and wind projects.
In a separate announcement, Adani Energy Solutions (AESL), another company within the Adani portfolio, said that it acquired the Khavda Phase IV Part-A transmission project.
The private transmission and distribution company completed the acquisition after receiving a letter of intent (LOI) from REC Power Development and Consultancy (RECPDCL).
Khavda IVA Power Transmission is a special purpose vehicle (SPV) set up by RECPDCL for evacuating renewable energy from the Khavda renewable energy park under the phase IV part A package.
Part of the national grid, the Khavda IV A transmission line will help evacuate clean energy by connecting 765kV double circuit lines from Khavda to Lakadia and Bhuj in Gujarat and setting up a transformation capacity of 4,500MVA.
The 298km Khavda phase IV part-A project will entail an investment of INR40.91bn ($490m).
