Adani Green Energy (AGEL) said on Thursday that Total SA has signed a binding agreement wherein the French energy giant will invest $510 million to acquire 50% stake in the upcoming unit which will house AGEL’s 2,148 megawatt (MW) of currently operational solar projects. The acquisition is part of Total’s target of building a portfolio of low-carbon businesses that could account for 15% to 20% of its sales by 2040. Under a separate deal, the two firms will also build an 800-MW solar power plant in Qatar.
The average tariff of AGEL’s operational solar plants is Rs4.82/unit and has a capex to Ebitda ratio of 6.04. None of the solar projects under this deal sell power to Andhra Pradesh, which has decided to re-open power purchase agreements to reduce tariff. AGEL’s another 3,495-MW under-construction renewable energy capacity, which remains outside the Total deal, will sell power at Rs2.80/unit on an average.
