Adani Green, Total JV acquires Essel Group's solar assets
"The JV has completed another acquisition as per JV agreement, by way of transfer of 205 MW of operating solar assets for an enterprise valuation of Rs. 1,632 crore.
Adani Green Energy Limited (AGEL) and Total SA (TOTAL) had formed a 50:50 joint venture for 2,148 MW solar power assets in India, which was setup at an enterprise valuation of Rs. 17,385 crore in April 2020. The JV has today completed another acquisition as per JV agreement, by way of transfer of 205 MW of operating solar assets for an enterprise valuation of Rs. 1,632 crore. With the acquisition, the total operating renewable portfolio under the JV stands at 2,353 MW.
Total, through its step-down subsidiary has invested Rs. 310 crore in the JV for 50% stake in the new acquisition. AGEL had earlier announced acquisition of these assets from Essel Group on 01 Oct 2020. The assets are located in Punjab, Karnataka and Uttar Pradesh. All the assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 21 years.
The transaction underlines AGEL's and Total's commitment to grow the JV platform and to deepen their partnership in the renewables space. The assets expand the JV's footprint in states where it already has a presence through its existing portfolio. This coupled with AGEL's strong operational expertise will help deliver value to the JV partners.
Adani Group Chairman, Gautam Adani, commented; "India continues to be one of the most attractive markets for clean energy globally. We are delighted to expand our partnership with Total and are committed to grow our renewables JV platform with them. This step is in line with our ambition of achieving 25 GW of renewable power capacity by 2025 and becoming the world's largest renewable power company by 2030."
Click here to attend ICN's e-conference on 'Role of R&D in Making Chemical Industry Aatma Nirbhar'