Adani Green Energy Limited (AGEL) and Total Gas & Power Business Services SAS (TOTAL) have entered into a binding arrangement for an investment of about $510 million for acquisition of 50 percent stake and other instruments in a joint venture company (JVCo).

The JVCo will house 2,148 MWac operating solar projects, which currently 100 percent owned by AGEL. The balance 50 percent stake in the JVCo will continue to be with AGEL. The solar portfolio is spread across 11 states in India.

The transaction is subject to customary approvals and definitive agreements. The transaction underlines the AGEL’s and Total’s commitment to address India’s growing demand for power in a sustainable manner and help meet India’s climate change goals.

Adani Group chairman Gautam Adani said: “We are delighted to extend our long-term partnership with TOTAL to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani Group commitment towards sustainable development.”

“This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030.”

TOTAL chairman and chief executive officer Patrick Pouyanné 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 2 GW of solar projects represents a real change of scale of TOTAL’s presence in India's renewable energy sector, which has significant growth potential in the coming years.

“It will contribute to our ambition to deploy 25 GW of renewable energy 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.”