French energy giant TotalEnergies has entered into a new joint venture (JV) with India’s renewable energy developer Adani Green Energy Limited (AGEL). This collaboration aims to develop a substantial solar portfolio exceeding 1 GW, marking a significant step in both companies’ efforts to expand their clean energy footprints. The JV aligns with India’s ambitious goals to ramp up its renewable energy capacity to 500 GW by 2030.
TotalEnergies’ previous investments in renewable energy ventures in India show a well-established track record. In 2021, the company acquired a 20% stake in AGEL, and in 2020, both entities formed a JV to manage 3 GW of solar power. Additionally, TotalEnergies recently embarked on another JV with AGEL for over 1 GW of solar and wind projects. These historical investments indicate a growing and consistent interest in India’s renewable energy sector.
India, in 2022, committed to reducing its emissions intensity by 45% by 2030 and transitioning approximately 50% of its electric power to non-fossil-based sources. These developments underscore the country’s aggressive push towards clean energy, further highlighting the significance of the TotalEnergies and Adani collaboration. The JV will contribute to India’s renewable energy targets and support its commitment to climate action.
Investment and Project Details
Under the new agreement, TotalEnergies will invest $444 million in equity in the JV, with Adani Green contributing a 1,150 MWac solar portfolio in Khavda, Gujarat. This region is already home to the world’s largest renewable energy site, which spans 538 square kilometers and is expected to reach a wind and solar capacity of 30 GW. Electricity generated by the JV’s projects will be sold through Power Purchase Agreements (PPAs) with a federal government agency and on the wholesale market.
Strategic Collaborations
The latest JV is part of a series of partnerships between TotalEnergies and Adani, including TotalEnergies’ recent acquisition of a 25% stake in Adani’s green hydrogen-focused business, Adani New Industries Ltd (ANIL). The companies’ ongoing collaborations signify a robust commitment to a diversified and sustainable energy future. Each of these ventures aims to leverage market liberalization opportunities and fortify their positions in the expanding renewable energy market in India.
TotalEnergies stated that the new JV allows the company to capitalize on India’s electricity market liberalization, enabling them to maximize their investments in the region. This strategic move not only aligns with TotalEnergies’ broader objectives but also supports India’s renewable energy aspirations. Adani Green’s significant asset contribution and ongoing projects in the Khavda region further enhance the JV’s potential impact.
TotalEnergies and Adani Green Energy Limited’s new joint venture represents a strategic alignment that leverages both entities’ strengths to push forward renewable energy initiatives. The partnership will contribute significantly to India’s renewable energy goals and demonstrates the companies’ commitment to sustainable development. This collaboration is expected to enhance energy security, reduce carbon emissions, and promote economic growth in the region. By investing in and developing large-scale renewable energy projects, TotalEnergies and Adani are setting a precedent for future international cooperation in the clean energy sector.
