French company Total’s love affair with India’s renewables sector continues.
Already having major joint ventures with India’s Adani Group firms for renewable energy projects, gas distribution, and other projects, Total’s chief executive Patrick Pouyanne said last week that his company aimed to increase its renewable energy portfolio in India to 6 gigawatts by 2025, per VCCircle.
Pouyanne was speaking in an online interview on the sidelines at the India Energy Forum by CERAWeek.
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India’s renewable sector grows
In mid-October, the Competition Commission of India approved a transaction between Adani Green Energy and a subsidiary of Total to transfer 2.1 gigawatts of solar and wind energy assets to a joint venture company. Adani Green Energy and Total’s subsidiary each have 50% holding in the joint venture, Clean Technica reported.
Earlier in the year, Total and Adani Green Energy Ltd (AGEL) created a 50:50 joint venture. Adani transferred its solar assets in operation to the JV. These projects are in 11 Indian states and have a cumulative capacity of over 2 GW.
What’s more, all of them benefit from nearly 25-year power purchase agreements (PPA) with national and regional electricity distributors.
Total also has a 50:50 JV with Adani for a liquefied natural gas (LNG) import terminal. The terminal, located in the Indian province of Odisha, would have a capacity of 5 million tons per annum. It also has a 37.4% stake in Adani Gas Ltd, the publicly traded company for city gas distribution.
Total’s partnership with Adani Green is significant. Total’s global renewable energy assets consist of about 7 gigawatts of power generation assets. That total includes over 3 gigawatts of renewable energy assets.
Adani Green Energy has also secured the rights to develop 8 gigawatts of solar power capacity. Its overall transactions with Total has led to its meteoric rise over a short period of time.
A recent report by ratings agency CRISIL said investments in the renewable energy sector in India may go up as much as 35% as global investors eyed Indian markets in the post-COVID period.
These investments may add as much as 35 GW of renewables capacity in the three years through fiscal 2023.
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