TotalEnergies and Adani Energy Form JV for Solar Portfolio

TotalEnergies, a global integrated energy company, on Tuesday said that it has entered into an agreement with India’s Adani Green Energy Limited (AGEL) to create a new joint venture (JV), equally owned by TotalEnergies and AGEL, with a 1.15 GW solar portfolio at Khavda in Rann of Kutch in Gujarat.

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 liberalisation of the Indian electricity market.

This will strengthen TotalEnergies’ strategic alliance with AGEL, allowing it to support the company in becoming a global renewable leader as it targets 50 GW of renewable power capacity by 2030. AGEL already operates over 11 GW of solar and wind capacity in India.

AGEL will contribute to the joint venture with assets and TotalEnergies will provide an equity investment of $444 million to support their development. 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.

World’s Largest RE Plant

AGEL (19.75% owned by TotalEnergies), is developing the world’s largest renewable energy site in the Khavda region. Spanning over 538 sq km, five times the size of Paris, the site will boast solar and wind capacity of 30 GW. Of this, 2 GW has already been operationalised by AGEL. Once completed, Khavda will generate enough electricity to power the equivalent of 16 million homes in India.

As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers.

At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.

India’s Goals

India aims to increase its renewable energy capacity to 500 gigawatts (GW) by 2030 and potentially 1 terawatt (TW) by 2035. As of March 2024, India has installed about 190 GW of renewable energy and the government has approved 50 solar parks with a combined capacity of 37.49 GW.

 Coming to offshore wind and Green Hydrogen projects, India has an offshore wind target of 30 GW by 2030 and aims to produce 5 million tonnes of green hydrogen by 2030. India’s goals are driven by the need to meet growing energy demands and transition away from fossil fuels to combat climate change.