TotalEnergies in $444mn solar venture with India’s Adani Green

BENGALURU: Adani Green Energy Limited (AGEL) has announced a strategic joint venture with TotalEnergies, involving an investment of $444 million into a new entity, aimed at efficiently managing a portfolio of solar projects totaling an impressive 1,150 megawatts (MW).

Both AGEL and TotalEnergies will hold equal ownership of the new entity, each possessing a 50 per cent stake.

The partnership not only underscores the commitment of both companies to the sustainable energy sector but also aligns with the broader objectives of global decarbonisation efforts, particularly in the context of India’s burgeoning energy landscape.

The primary objective of the strategic alliance is to facilitate the development and management of solar projects located within Khavda, Gujarat, which proudly hosts the world’s largest renewable energy plant.

By pooling resources and expertise, AGEL and TotalEnergies aim to harness the immense potential of solar energy, thereby contributing to India’s ambitious renewable energy targets. The generated electricity from the solar projects will be procured through Power Purchase Agreements (PPAs) with the Solar Energy Corporation of India (SECI) and will also be available for sale in the wholesale market.

Creating green jobs

The dual approach not only ensures financial sustainability but also enhances the operational flexibility of the JV.

The site in Khavda, Gujarat, which will serve as the cornerstone for these solar initiatives, is characterized by an expansive area of 538 square kilometres—five times larger than Paris.

AGEL has already operationalised a cumulative capacity of 2,250 MW of solar and wind energy at this site.

Upon the successful completion of the new solar projects, the plant is projected to supply affordable, clean energy to over 16 million households across India.

Furthermore, the endeavour is anticipated to create more than 15,200 green jobs, significantly bolstering local economies, while helping to mitigate the environmental impacts associated with traditional fossil fuel-based energy sources by avoiding approximately 58 million tons of CO2 emissions annually.

The strategic collaboration between AGEL and TotalEnergies represents a significant step towards achieving India’s ambitious renewable energy targets, which include attaining 50 GW of renewable energy capacity by 2030.

AGEL’s current operating renewable portfolio stands at an impressive 11.2 GW, the largest in India, which underscores its pivotal role in the transformation of the energy market. This commitment not only resonates with the Indian government’s decarbonisation goals but also aligns with TotalEnergies’ vision as a global multi-energy company present in nearly 130 countries.

Moreover, AGEL’s operational portfolio is distinguished by its environmentally responsible practices, including certification as ‘water positive for plants of more than 200 MW capacity,’ ‘single-use plastic free,’ and ‘zero waste-to-landfill.’