Adani Green Energy Ltd (AGEL) on Thursday (September 26) announced the execution of a joint venture agreement with French energy giant TotalEnergies, marking a significant step in the expansion of renewable energy in India.

“…we would like to inform that the company has signed a Joint Venture Agreement with TotalEnergies Renewables Singapore Pte Limited (TotalEnergies) and Adani Renewable Energy Sixty Four Limited (ARE64L),” the company said in a stock exchange filing.

The partnership sees TotalEnergies investing $444 million to acquire a 50% stake in Adani Renewable Energy Sixty Four Ltd (ARE64L), which encompasses a robust portfolio of 1,150 MWac solar projects located at the world’s largest renewable energy plant in Khavda, Gujarat.

With this investment, ARE64L is now equally owned by AGEL and TotalEnergies, establishing a solid foundation for future growth in the renewable energy sector.

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The joint venture will enable both companies to jointly manage a diverse array of solar assets, including operational projects and those currently under development. This includes a mix of merchant-based projects and those supported by power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI), effectively enhancing AGEL’s operational capabilities.

The announcement follows the approval of the joint venture by AGEL’s shareholders during an extraordinary general meeting held on September 25, 2024.

In addition to the initial investment, TotalEnergies has indicated plans for further funding once the under-development projects achieve commercial operations. The additional investment amount will be based on book value, subject to specific parameters concerning project costs and timelines, and will be beyond the initial investment of approximately $444 million.

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Shares of Adani Green Energy Ltd ended at ₹2,056.90, down by ₹10, or 0.48%, on the BSE.