TotalEnergies Invests $444MM in Solar Project in India

TotalEnergies SE is partnering with Adani Green Energy Limited (AGEL) for a new solar power portfolio in India.

The two companies have entered into an agreement to create a new joint venture, equally owned by TotalEnergies and AGEL, with a 1,150 megawatt alternating current (MWac) solar portfolio in Khavda, Gujarat.

TotalEnergies said in a news release that it will provide an equity investment of $444 million, while AGEL, in which it owns a 19.75 percent stake, will contribute assets. The signing and completion of the transaction is subject to the approval of AGEL’s shareholders and satisfaction of customary closing conditions, including the receipt of certain regulatory approvals.

AGEL is developing the “world’s largest renewable energy site” in the Khavda region, according to the release. Spanning over 207.7 square miles (538 square kilometers), the site is anticipated to have solar and wind capacity of 30 gigawatts (GW), with 2 GW already operationalized by AGEL. Once completed, Khavda will generate enough electricity to power the equivalent of 16 million homes in India, the release said.

The electricity generated by the solar projects will be sold through Power Purchase Agreements (PPAs) signed with the federal government agency, Solar Energy Corporation of India (SECI), and through sales on the wholesale market. This new transaction will allow TotalEnergies to capitalize on the ongoing liberalization of the Indian electricity market, it noted.

Paris-based TotalEnergies said its strategic alliance with AGEL will allow it to support the company in becoming a global renewable leader as it targets 50 GW of renewable power capacity by 2030. AGEL currently operates over 11 GW of solar and wind capacity in India.

Adani Green Energy Limited (AGEL) describes itself as India’s largest and one of the leading renewable energy companies in the world enabling the clean energy transition. AGEL develops, owns, and operates utility scale grid-connected solar, wind, hybrid and hydro pumped storage renewable power plants.

AGEL currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 states. The company has set a target of achieving 50 GW by 2030, aligned with India’s decarbonization goals. The company is focused on leveraging technology to reduce the Levelized Cost of Energy (LCOE) in pursuit of enabling large-scale adoption of affordable clean energy. A

Further, AGEL’s operating portfolio is certified water positive for plants of more than 200 MW capacity, according to the release.

In a related update on renewables, TotalEnergies recently announced an investment of $100 million in sustainable forestry operations in North America.

The signed an agreement with climate solutions firm Anew Climate and U.S. carbon stewardship company Aurora Sustainable Lands. The agreement is for the deployment of projects targeting to protect productive forests from heavy timber harvesting, advance conversion to sustainable management practices, and enhance their ability to store more carbon from the atmosphere.

TotalEnergies said the investment supports improved forest management (IFM) practices across a portfolio of 20 carbon projects, covering 300,000 hectares in 10 states across the USA: Arkansas, Florida, Kentucky, Louisiana, Michigan, Minnesota, New York, Virginia, West Virginia, and Wisconsin.

Anew Climate and Aurora Sustainable Lands will provide operational oversight to ensure the carbon projects meet the highest standards of additionality and durability, according to an earlier release.

To contact the author, email rocky.teodoro@rigzone.com