- TotalEnergies invests $444 million in a new joint venture with Adani Green Energy, expanding their partnership to 1.15 GW of solar projects.
- Electricity from the new projects will be sold on the wholesale market and through agreements with the Solar Energy Corporation of India.
- Adani Green shares rose 5.9% following the announcement despite past controversies involving the Adani Group.
TotalEnergies has announced a significant investment in India’s renewable energy sector. The French oil giant will contribute $444 million to a new joint venture with Adani Green Energy Ltd.
This new agreement builds on a previous deal formed in September 2023 worth $300 million. That partnership gave TotalEnergies direct ownership of 1.05 gigawatts (GW) of wind and solar assets from Adani Green. The latest venture will see both companies equally share a portfolio of 1.15 GW of solar projects, both operational and under construction.
The electricity generated will be sold on the wholesale market and through power purchase agreements with the Solar Energy Corporation of India, a federal agency that oversees solar energy sales. TotalEnergies aims to take advantage of India’s ongoing liberalisation in the power market.
India is a crucial market for TotalEnergies, which is keen to expand its presence in the country’s natural gas and renewable energy sectors. Since the pandemic year of 2020/21, India’s electricity generation has grown by about 8% annually. This increase is driven by higher economic activity and severe heatwaves, surpassing power demand growth in other major economies.
In early 2023, TotalEnergies paused further investments with Adani Group. This decision followed allegations of improper dealings and tax avoidance by the group, published by US short-seller Hindenburg Research. These allegations resulted in a $150 billion drop in Adani Group’s share value.
Despite these past issues, shares of Adani Green Energy rose by 5.9% on Monday. The new investment demonstrates TotalEnergies’ ongoing commitment to expanding its renewable energy operations in India.
The joint venture aims to enhance the renewable energy landscape in India. TotalEnergies will invest significantly, reflecting its confidence in the growth potential of the Indian energy market. The partnership is expected to support India’s transition to cleaner energy sources and contribute to the country’s energy needs.
The deal also signifies a strategic move by TotalEnergies to solidify its position in a critical market. By increasing its stake in Adani Green’s solar projects, TotalEnergies plans to leverage India’s growing demand for renewable energy.
In summary, TotalEnergies is deepening its engagement with India’s renewable energy sector through this $444 million investment. The joint venture with Adani Green Energy Ltd marks a significant step in its strategy to expand its global footprint and capitalise on emerging energy markets.