In April 2020, international energy company, Total, and AGEL, a renewable energy subsidiary of the Adani Group, formed a joint venture (JV) to which AGEL contributed a portfolio of 2.1 gigawatts (GW) of solar power plants. As part of an option provided for in the initial contract for the formation of the JV, Total and AGEL have agreed to extend this portfolio from 2.1 to 2.3 GW with the addition of new solar farms in India.
Chairman and CEO of Total, Patrick Pouyanné, said with an ambitious target of 175 GW of installed capacity by 2022, India is a strong growth area for renewable energy.
“Since last year, the Group has strengthened its commitment in India with around 5 GW of solar projects in the country, in line with its ambition to become a world leader in renewable energies. We are very pleased to further expand our partnership with the Adani Group,” Mr Pouyanné said.
The transaction is in line with Total’s objective of double-digit return on equity for renewable projects.
As part of its ambition to get to net-zero by 2050, Total is building a portfolio of activities in electricity, renewable in particular, that could account for up to 40 per cent of its sales by 2050.
By the end of 2020, Total’s gross power generation capacity worldwide will be around 12 GW, including about 7 GW of renewable energy.
The company is aiming to reach 35 GW of production capacity from renewable sources by 2025.
AGEL has 14 GW of operating, under-construction and awarded renewable power projects catering to investment-grade counterparties. The company aims to achieve 25 GW of renewable power by 2025.
