TotalEnergies SE (TTE) has entered into a strategic partnership with Adani Green Energy Limited (AGEL) to establish a 50/50 joint venture. This collaboration will focus on developing a substantial 1,150 MWac (1,575 MWp) solar portfolio located in Khavda, Gujarat, India.
As part of the joint venture, AGEL will contribute existing assets, while TotalEnergies will make an equity investment of $444 million to support the project’s development. This significant investment underscores TotalEnergies’ commitment to expanding its global renewable energy presence and achieving its ambitious goal of reaching 50 GW of renewable capacity by 2030.
The solar projects developed through this joint venture will generate electricity through Power Purchase Agreements (PPAs) with the Solar Energy Corporation of India (SECI) and through the wholesale market. AGEL, already a major player in India’s renewable energy sector, currently operates over 11 GW of solar and wind capacity.
This strategic partnership positions TotalEnergies to capitalize on the liberalization of India’s electricity market. The transaction’s completion is subject to AGEL shareholder approval, customary closing conditions, and necessary regulatory approvals.
TotalEnergies’ commitment to renewable energy extends beyond this joint venture. Last month, the company made headlines by delivering its first 100% biofuel bunker in Singapore, demonstrating its dedication to advancing shipping decarbonization through the use of UCOME biofuel.
For the current fiscal year (FY24), TotalEnergies has reaffirmed its net investment plans, allocating $17 billion to $18 billion, including a substantial $5 billion dedicated to Integrated Power. Investors interested in gaining exposure to TotalEnergies can consider the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (EIPX) and the First Trust Exchange-Traded Fund VIII FT Energy Income Partners Enhanced Income ETF (EIPI).
TotalEnergies’ stock (TTE) experienced a slight decline of 1.20% to $68.17 in premarket trading on Monday. This strategic move into India’s burgeoning solar market further solidifies TotalEnergies’ position as a leading player in the global renewable energy landscape.
