Adani Green Energy Partners with TotalEnergies in 1,150 MWac Renewable Energy Project

Adani Green Energy Limited (AGEL) has officially signed a Joint Venture Agreement (JVA) with TotalEnergies Renewables Singapore Pte Limited (TotalEnergies) and Adani Renewable Energy Sixty Four Limited (ARE64L) as of September 26, 2024. 

This significant partnership was finalised after receiving approval from the majority of the company’s shareholders in an extraordinary general meeting held on September 25, 2024. The Joint Venture agreement formalises a 50:50 ownership stake between AGEL and TotalEnergies in ARE64L, which houses a 1,150 MWac renewable energy project portfolio.

TotalEnergies, a global multi-energy company involved in oil, biofuels, natural gas, green gases, renewables, and electricity, has invested an initial amount of USD 444 million to acquire a 50% stake in ARE64L. The portfolio of ARE64L consists of a mix of operational and under-development solar assets, including both merchant-based and SECI PPA (Solar Energy Corporation of India) projects housed under Adani Renewable Energy Fifty Six Limited.

In addition to the initial investment, TotalEnergies will further invest upon the successful completion and commercialisation of the under-development projects. The additional funding, which will be determined based on project costs, timelines, and book value, will be subject to necessary approvals. This extra investment will be over and above the initial USD 444 million.

From a business operations perspective, Adani Green Energy Limited will retain overall responsibility for managing the day-to-day operations of ARE64L and its project portfolio, including the construction and development of the under-development assets. The governance structure of ARE64L will be a 50:50 setup between AGEL and TotalEnergies, with equal board representation from both parties. The chairman of the board will be a nominee from AGEL, with the board responsible for strategising, supervising, and maintaining internal controls across ARE64L and its subsidiaries.

The investment by TotalEnergies is a key milestone in monetising AGEL’s assets while retaining control. This capital infusion will unlock additional funds that AGEL can utilise for future growth initiatives. The transaction reinforces the strong strategic alliance between AGEL and TotalEnergies and will assist AGEL in its ambitious goal of becoming a leader in India’s renewable energy sector. AGEL aims to reach 50 GW of renewable energy capacity by 2030, and this partnership is a significant step toward achieving that objective.

The partnership between AGEL and TotalEnergies not only strengthens AGEL’s market position but also aligns with India’s broader renewable energy goals, positioning the company at the forefront of sustainable energy development in the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.