Adani Green Energy said that Total SA has signed an agreement for the French energy giant to invest $510 million to buy 50 percent stake in the upcoming unit which will house AGEL’s 2,148 megawatt (MW) operational solar projects.
The acquisition is part of Total’s target of building a portfolio of low-carbon businesses that could account for 15 percent to 20 percent of its sales by 2040. The two firms will also build an 800-MW solar power plant in Qatar under a separate deal.
The average tariff of Adani Green Energy’s operational solar plants is Rs 4.82 per unit and has a Capex to EBITDA ratio of 6.04. Adani Green Energy’s another 3,495-MW under-construction renewable energy capacity, which remains outside the Total deal, will sell power at Rs 2.80 per unit on an average.
Total and Adani in October 2019 agreed to form another 50;50 partnership in India which would include several assets across the gas value chain and imports and regasification liquefied natural gas (LNG) terminals, including Dhamra in Odisha.
Total would also pick up 37.4 percent stake in Adani Gas. The two companies also plan to establish a joint venture to market LNG in India and Bangladesh and set up a retail network of 1,500 fuel service stations over the period of 10 years.
Adani Green Energy, the renewable energy unit of the Adani Group, reported 8.3 percent increase in loss to Rs 128.5 crore in the quarter ended December 31.
Adani Green Energy’s solar assets sold 4.2 percent more electricity as operational capacity increased 13.2 percent to 2,148 MW at the end of Q3FY20. Adani Green Energy has a debt of at Rs 13,451 crore.