Adani Green
Subscribe to our YouTubeChannel

Adani Green Energy (AGEL) announced on Monday that French energy giant Total SA would acquire from the Adani Group a 20 percent minority stake in the company. The deal, worth around $2 billion, will also provide Total with a seat on AGEL’s board of directors.

The transaction follows Total’s investment in April 2020 of $510 million to acquire a 50 percent stake in AGEL’s 2,353 megawatt (MW) operational solar projects in the country. The acquisition is part of Total’s goal of building a renewable energy capacity portfolio of 35,000 MW globally by 2025.

READ :   After acceptance of a three-match ban for an Instagram post, Edinson Cavani in peace

Gautam Adani, Chairman of the Adani Group, said: “We are pleased to deepen our strategic alliance with Total, a global energy major, and welcome them as an important shareholder in AGEL.” Adani added: “We have a shared vision of developing renewable energy at affordable prices to enable a sustainable transformation of energy in India.”

Rs 3.26/unit is the average rate at which AGEL sells power. Although it is higher than the record low Rs 2/unit rates found in recent solar auctions, the tariff is lower than the country-wide average power purchase cost of Rs 3.6/unit for discoms.

READ :   Coronavirus In Pakistan: Pakistan refuses food Supplies to Hindus as coronavirus rages

In addition to the aforementioned operational and under-construction capacities for renewable energy, AGEL has 8,600 MW of pipeline projects, including 8,000 MW of solar plants to be constructed under a solar system linked to manufacturing.

As part of the scheme, Adani will supply the central government agency Solar Energy Corporation of India (Seci) with power at Rs 2.92 per unit and build 2,000 MW of solar production capacity. However, Seci has been struggling to find buyers for electricity to be generated from this upcoming project with lower tariffs found in recent auctions.

READ :   Actor-politician Khushboo witnesses an accident, shares the image of the car damaged

Total has partnered with Adani to boost its presence on other energy fronts in the country as well. The two companies formed a 50:50 venture in October 2019 to jointly own and operate multiple assets across the value chain of gas, including liquefied natural gas (LNG) imports and regasification terminals.

Total has acquired a 37.4% stake in Adani Gas and a 50% stake in the Adani Dhamra LNG project in Odisha. The two companies are also planning to establish a joint venture to market LNG in India and Bangladesh and establish a 10-year retail network of 1,500 fuel service stations.” India is the right place to implement our energy transition strategy based on two pillars: renewables and natural gas, given the size of the market,” said Patrick Pouyanné, Total’s Chairman and CEO.

READ :   "Alia, my girlfriend, is an overachiever," says Ranbir Kapoor, confirming Alia Bhatt's marriage.