Total acquires 20 percent stake in AGEL for $2.5bn
Total has acquired a 20 percent minority interest in Adani Green Energy Limited (AGEL) from India's Adani Group.
It is another strong signal from the French Energy group of its intention to grow its global renewable energy profile. AGEL, which started in 2015, is billed as the "world's largest single location solar power project" with over 14.6GW of contracted renewable capacity and operating capacity of 3GW.
With another 3GW under construction and 8.6GW under development, the company aims to achieve 25GW of renewable power generation by 2025.
The investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business.
During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space. Total and Adani agreed the acquisition of a 50 percent stake in a 2.35GWac portfolio of operating solar assets owned by AGEL and a 20 percent stake in AGEL for a global investment of US$2.5 billion.
Along with the minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
Patrick Pouyanné, Chairman and CEO of Total, said: "Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas."
Adani Group Chairman, Gautam Adani, added that it has a "shared vision" of developing renewable power at affordable prices to enable a sustainable energy transformation in India. "We look forward to working together towards delivering India’s vision for 450GW renewable energy by 2030," he said.
Lightsource bp’s first Spanish project powers up in Zaragoza
Lightsource bp has powered up its 247MW flagship solar project Vendimia in Zaragoza, Spain.
Around 615,000 bifacial solar panels have been installed, over 650 hectares of land on multi-row tracker technology enabling the panels to follow the sun, maximising energy generation efficiency. In addition, two overhead transmission lines at 18km and 20km were constructed to efficiently deliver the solar power into the local network.
The five-project cluster was constructed safely during the COVID-19 pandemic and commercial operation recently began. The total power output will be supplied to bp’s European power trading team under a long-term Power Purchase Agreement (PPA).
Fernando Roger, Country Head for Lightsource bp Spain, said the connection of its Vendimia project demonstrates the resilience of solar. "We had to face many challenges due to the COVID-19 pandemic, but our team and trusted partners remained focussed, and now we have completed our first project in Spain. We would also like to extend a special thank you to all the landowners involved for their continued support on this project.
Felipe Arbelaez, senior vice president for zero carbon energy bp said: “It’s fantastic to see the safe start-up of this first project in Spain, and for Lightsource bp to achieve an impressive 3GW pipeline in just two years. Through disciplined investment and safe execution, we are delighted to see the next chapter of bp’s energy story in Spain come online. This project is also a great example of the power of bp’s integration capabilities as our expert power trading team will offtake the power generated, supporting the financial stability of the project and meeting bp’s strict returns threshold.”
The construction process was handled by Lightsource bp’s appointed contractor, Prodiel (an Andalusian engineering, procurement and construction company) and over 600 local jobs were created during that time. Prodiel will continue to maintain the solar cluster under an Operations & Maintenance agreement for the next two years.
At the opening ceremony, Carlos Barassa, head of country for bp Spain, said: "The Vendimia solar project that we are inaugurating today in Zaragoza is great example of the fulfillment of bp's ambition in its transition to an integrated energy company, and our contribution to building a low-carbon future."
bp will pay 7X Energy $220 million for the projects and 1GW of 'safe harbour' equipment and expects the acquisition to complete in 30 days. The projects, spread across 12 states - with the largest portfolios in Texas (ERCOT) and MidWest (PJM) - are expected to meet bp’s low carbon investment criteria, generating returns of at least 8-10%.