TotalEnergies and Adani Green Energy Limited (AGEL) have signed a new agreement to create a joint venture focused on the development of solar projects with a total capacity of 1.575 GW in the state of Gujarat.
This 50/50 partnership represents an investment of $444 million by TotalEnergies, while AGEL contributes its existing assets.
This project reinforces the commitment of both groups to the expansion of renewable energies in the Indian market, which is positioning itself as a strategic area for energy diversification.
The agreement comes at a time when India, the third largest emitter of CO2, is continuing its transition to cleaner energy sources.
The electricity produced will be marketed via purchase contracts with the Solar Energy Corporation of India (SECI) and on the wholesale electricity market, providing a significant source of renewable energy supply.
Development of the Khavda site in Gujarat
The joint venture between TotalEnergies and Adani is focusing on the development of the Khavda site, planned to become one of the world’s largest renewable energy parks.
The site, covering 538 square kilometers, aims to achieve a capacity of 30 GW in solar and wind power.
Currently, 2.25 GW are already operated by AGEL, with a further increase in capacity planned through this new collaboration.
Projects at Khavda include solar and wind infrastructure, with electricity to be sold through long-term agreements at competitive prices on the wholesale market.
The importance of this site for the Indian energy market lies not only in its size, but also in its ability to reduce dependence on fossil fuels.
Economic and regulatory issues
The expansion of renewable energy production capacity in India requires careful attention to the necessary regulatory conditions and approvals.
The signing of this agreement between TotalEnergies and Adani is subject to AGEL shareholder approvals and customary closing conditions, including approvals by the relevant authorities.
The Indian market, characterized by complex administrative and political challenges, requires careful management of energy infrastructure risks.
Investments in large-scale projects such as Khavda are strategic for strengthening India’s energy security while meeting its commitments to sustainable development.
For TotalEnergies, this agreement is part of a drive to expand its presence in the renewable energies market, in response to growing demand for alternative energy solutions.
Outlook for the renewable energy market
The alliance between TotalEnergies and Adani in this context reflects a dynamic of rapid expansion of renewable energies in India, fuelled by favourable public policies and foreign investment.
The 1.575 GW Khavda project has the potential to become a model for public-private partnerships in the management and development of energy resources.
By combining their expertise and resources, TotalEnergies and Adani aim to capture market share in a rapidly changing sector.
With energy demand continuing to grow in India, the addition of renewable energy production capacity is becoming crucial to meet consumption needs while contributing to an energy diversification strategy.
With this investment, TotalEnergies confirms its strategic focus on large-scale projects outside its traditional activities, while working with strong local players such as Adani to secure its position in high-potential markets.
