Adani Green completes JV with TotalEnergies, raises $300 million

With this transaction, TotalEnergies has reinforced its strategic alliance with AGEL and support in enabling AGEL’s target of 45 GW capacity by 2030.

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Adani Green Energy Limited (AGEL) and French energy major TotalEnergies have completed the process to form a 50:50 joint venture with the latter investing $300 million in the new entity, the Adani Group company said on December 27.

This follows the binding agreement announced between AGEL and TotalEnergies in September 2023.

“With this transaction, TotalEnergies has reinforced its strategic alliance with AGEL and support in enabling AGEL’s target of 45 GW capacity by 2030,” Adani Green said in a statement.

As a part of the transaction, AGEL transferred an operational capacity of 300 megawatts (MW), other projects under construction (500 MW) and under development assets (250 MW) to the joint venture. TotalEnergies has acquired 50% equity in the new entity.

Reacting to the news of the JV, shares of the company rose 1.4% at BSE at 10:13 IST to Rs 1621.85. Benchmark Sensex was up 0.6% at the time.

Also Read: TotalEnergies inks binding termsheet with Adani Green arm, to pump $300 million for 50:50 JV

AGEL develops, owns, and operates utility-scale grid connected solar, wind, and hybrid renewable power plants and has an operating renewable portfolio of 8.4 gigawatts (GW). TotalEnergies is a substantial minority investor at the listed company with a 19.7% stake and this new joint venture is an extension of that.

Commenting on the relation with TotalEnergies in an investors’ call after AGEL announced its result for the first half of 2023-24, Chief Financial Officer Phuntsok Wangyal said, “Both those relationships will continue going forward.”

Fundraising to Fuel 45GW Goal

On December 26, AGEL announced that its board has approved the promoter’s plan to infuse Rs 9,350 crore into the company by investing in warrants of the company. This, coupled with a debt worth $1.4 billion raised earlier this month, takes the total funds raised by the company to $3 billion.

The Gautam Adani-led company has stated earlier that the funds raised will be used for deleveraging and capital expenditure. The company's net debt has declined to Rs 38,190 crore as on end-September from Rs 40,455 in end-Mach.

The company has an ambitious target to have an operational capacity of 45 GW by 2030, of which it has firmed up plans for projects totalling 20.6 GW and secured land of over 2,00,000 acres which could support its capacity addition plans.