Total acquires 50% of Adani's 2 GW solar portfolio in India

Total and Adani Green Energy Limited (AGEL) have agreed to create a 50-50 joint venture, which will take over AGEL’ solar projects in operation, corresponding to a total capacity of over 2 GW across 11 Indian states; all the solar projects benefit from 25-year power purchase agreements (PPAs) with national and regional electricity distributors. Subject to regulatory approval, the transaction is valued US$500m.

AGEL is 74.92%-owned by the Adani Group, the largest energy and infrastructure conglomerate in India. AGEL currently holds a portfolio of 2,148 MW of installed solar capacity and 172 MW of installed wind capacity. In addition to 2 GW of solar capacity, AGEL (75% Adani Group) owns 172 MW of wind capacity. In addition, the company has 475 MW of solar capacity, 1,505 MW of wind and 990 MW of hybrid under construction. AGEL recently won a 700 MW solar-wind hybrid project in the State of Maharashtra (Western India). The project is set to enter operation in the second quarter of 2022, benefiting from a 25-year PPA at INR3.24/kWh (US$4.5c/kWh) with minimum capacity utilization factor requirements of 50%.

According to the government of India, installed renewable power capacity in India crossed the 84 GW threshold in December 2019 (84.4 GW), with wind power capacity reaching 37,280 MW, solar capacity 32,530 MW, biomass capacity 9,940 MW and small hydropower capacity 4,650 MW. India has set a target of 175 GW of renewable power capacity by 2022, including 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydropower. This corresponds to a cumulative power capacity of 40% from non-fossil fuel energy sources, in line with its Intended Nationally Determined Contribution (INDC).