MUMBAI: India’s Adani Group has announced the formation of a joint venture with TotalEnergies to manage a 1,150-megawatt solar project portfolio in Gujarat. The partnership will see Adani Green Energy Limited (AGEL) contribute its existing assets, while TotalEnergies will invest $444 million to accelerate the development of these projects.
Both AGEL and TotalEnergies will hold equal stakes in the venture. Currently, TotalEnergies owns a 19.75% stake in AGEL. The solar projects are located at the world’s largest renewable energy site in Khavda, Gujarat, which spans 538 square kilometers and aims to produce a total solar and wind capacity of 30 gigawatts, with 2 gigawatts already operational.
The electricity generated from these projects will be sold through purchase agreements with the Solar Energy Corporation of India and in the wholesale market. TotalEnergies views this venture as an opportunity to capitalize on India’s liberalizing electricity market.
TotalEnergies, which had 22 gigawatts of installed renewable electricity production capacity by the end of 2023, aims to expand this to 35 gigawatts by 2025. The Adani Group, which faced a significant market value loss earlier in 2023 due to allegations of corporate fraud, continues to collaborate with TotalEnergies despite past setbacks, including the suspension of a hydrogen venture. In September 2023, the two companies also announced plans to jointly develop wind and solar energy projects in India.
