French energy giant Total is to create a 50:50 joint venture with Adani Green Energy in India that will see the former acquire half of the latter’s over 2GW operating solar assets.
The projects are spread over 11 Indian states and benefit from nearly 25-year fixed rate power purchase agreements with national and regional electricity distributors.
The transaction has a value of $500m and is in line with Total’s objective of double-digit returns on renewable projects.
It remains subject to the approval of the relevant authorities, Total said.
Total chairman and chief executive Patrick Pouyanne said: “Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy.
“This interest in over 2GW of solar projects represents another big step of our investment in India’s energy sector.
“It will support our ambition to contribute to the deployment of 25GW of renewable capacities by 2025.
“We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market.”