TotalEnergies to Invest $444 Million in India Solar-Power Joint Venture — Update

By Christian Moess Laursen and Adam Whittaker

TotalEnergies plans to spend $444 million to create a joint venture to develop solar-power projects in India with Adani Green Energy, as the French energy major deepens its investments in the Indian electricity market.

TotalEnergies said Tuesday that it would make an equity investment in the joint venture while Adani Green will contribute assets. The business, with a portfolio of 1.15 gigawatts, will be equally owned by the two companies.

The deal follows TotalEnergies' investment last year of $300 million in a separate joint venture with Adani Green that granted it direct access to portfolio of 1.05 gigawatts solar- and wind-power assets in India.

"This new transaction will allow TotalEnergies to capitalize on the ongoing liberalization of the Indian electricity market," the French company, which makes most of its profits from oil and gas, said on Tuesday.

The country gets more than half of its energy from coal but is aiming for 500 gigawatts of renewable energy capacity by 2030. It needs to install around 50 gigawatts a year to meet the target, according to Indian renewable-energy specialist JMK Research.

The electricity generated by the joint venture will be sold through power purchase agreements signed with India's federal government agency Solar Energy Corporation and on the wholesale market.

The solar-power assets are located in the Khavda site, which Adani Green is developing in the western state of Gujarat. Once completed, it will be the world's largest renewable-energy site, according to TotalEnergies, with a solar and wind capacity of 30 gigawatts.

The joint venture is subject to approval by Adani Green Energy shareholders and regulatory authorities. TotalEnergies owns a 19.75% stake in the Indian renewable-energy company.

In February 2023, Adani Enterprises--the majority owner of Adani Green Energy--saw its share price plummet nearly 60% after short-selling firm Hindenburg Research accused the conglomerate of market manipulation.

The group denied the accusations but around $143 billion was wiped off the market value of seven Adani stocks in the turmoil. Findings from India's highest court and securities regulator were inconclusive but the share price of Adani Enterprises hasn't recovered to the level recorded on the day the report was published.

TotalEnergies said in the aftermath its exposure from its stakes in Adani Group were limited, only representing 2.4% of its capital employed in 2022.

Write to Christian Moess Laursen at christian.moess@wsj.com and to Adam Whittaker at adam.whittaker@wsj.com.

(END) Dow Jones Newswires

September 03, 2024 08:28 ET (12:28 GMT)

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