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TotalEnergies, AGEL Ink JV for Over 1 GW of Solar Project in India
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TotalEnergies SE (TTE - Free Report) announced that it has signed a new joint venture (JV) with Adani Green Energy Limited (“AGEL”). This will be equally owned by TotalEnergies and AGEL, with a 1,150 MWac (1,575 MWp) solar portfolio in Khavda, Gujarat.
AGEL will supply assets to the JV, while TotalEnergies will finance its growth with an equity investment of $444 million. The completion of the transaction is subject to the fulfillment of requirements, including the receipt of necessary regulatory clearances and approval of AGEL's shareholders.
The electricity generated by the solar projects will be sold through power purchase agreements with the federal government agency, Solar Energy Corporation of India, and through sales on the wholesale market. TotalEnergies will be able to profit from the continued liberalization of the Indian energy market, thanks to this new deal.
TTE’s Growth Prospects in India
According to a report by Energy World, India’s renewables growth story is expected to grow stronger this year. India is the second largest renewables growth market in Asia. Renewable energy capacity of 25 gigawatt (GW) is expected to be added in 2024. India is well prepared to achieve its renewable energy target of 500 GW installed capacity and reach 50% cumulative electric power installed capacity from clean energy sources by 2030.
TotalEnergies currently holds approximately 19.75% of the capital of Adani Green through its subsidiaries. In addition, Adani Green and TotalEnergies hold 50% each of the paid-up share capital of Adani Green Energy Twenty Three Limited and Adani Renewable Energy Nine Limited.
In September 2023, Adani Green and TotalEnergies agreed to form a JV to house a 1.05-GW green portfolio, where TTE was to invest $300 million.
TotalEnergies is actively making developments to expand its presence in the renewable energy market in India. The recent announcement should allow it to accelerate its development in the country.
TTE’s Focus on Clean Energy
In an effort to reach net zero by 2050, TotalEnergies is developing a world-class, cost-competitive portfolio that combines flexible assets like combined-cycle gas turbine and storage with renewable energy sources like solar, onshore and offshore wind, to provide clean, reliable electricity to its customers.
TotalEnergies had an installed gross renewable power generating capacity of 22 GW at the end of 2023. With further growth, TotalEnergies plans to produce 35 GW of power in 2025 and more than 100 TWh of net electricity by 2030.
As all industries rapidly adopt renewable energy as an energy source, TotalEnergies' efforts to expand its renewable energy portfolio, including its latest JV with AGEL, are expected to strengthen its position in the expanding renewable energy market.
Peer Moves
Along with TTE, other companies like BP plc (BP - Free Report) , ExxonMobil Corporation (XOM - Free Report) and Equinor ASA (EQNR - Free Report) are also set to lower emissions and increase renewable energy operations.
BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity in a decade.
BP’s long-term (three to five years) earnings growth rate is 4%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 8.4%.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. By 2050, it intends to achieve a net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 4.6%.
EQNR is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacity from renewables from 4 GW to 6 GW by 2026.
EQNR’s long-term earnings growth rate is 2.04%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year decrease of 1.5%.
TTE’s Stock Price Performance
In the past six months, shares of TotalEnergies have risen 4.2% compared with the industry’s 3.2% growth.
Image: Bigstock
TotalEnergies, AGEL Ink JV for Over 1 GW of Solar Project in India
TotalEnergies SE (TTE - Free Report) announced that it has signed a new joint venture (JV) with Adani Green Energy Limited (“AGEL”). This will be equally owned by TotalEnergies and AGEL, with a 1,150 MWac (1,575 MWp) solar portfolio in Khavda, Gujarat.
AGEL will supply assets to the JV, while TotalEnergies will finance its growth with an equity investment of $444 million. The completion of the transaction is subject to the fulfillment of requirements, including the receipt of necessary regulatory clearances and approval of AGEL's shareholders.
The electricity generated by the solar projects will be sold through power purchase agreements with the federal government agency, Solar Energy Corporation of India, and through sales on the wholesale market. TotalEnergies will be able to profit from the continued liberalization of the Indian energy market, thanks to this new deal.
TTE’s Growth Prospects in India
According to a report by Energy World, India’s renewables growth story is expected to grow stronger this year. India is the second largest renewables growth market in Asia. Renewable energy capacity of 25 gigawatt (GW) is expected to be added in 2024. India is well prepared to achieve its renewable energy target of 500 GW installed capacity and reach 50% cumulative electric power installed capacity from clean energy sources by 2030.
TotalEnergies currently holds approximately 19.75% of the capital of Adani Green through its subsidiaries. In addition, Adani Green and TotalEnergies hold 50% each of the paid-up share capital of Adani Green Energy Twenty Three Limited and Adani Renewable Energy Nine Limited.
In September 2023, Adani Green and TotalEnergies agreed to form a JV to house a 1.05-GW green portfolio, where TTE was to invest $300 million.
TotalEnergies is actively making developments to expand its presence in the renewable energy market in India. The recent announcement should allow it to accelerate its development in the country.
TTE’s Focus on Clean Energy
In an effort to reach net zero by 2050, TotalEnergies is developing a world-class, cost-competitive portfolio that combines flexible assets like combined-cycle gas turbine and storage with renewable energy sources like solar, onshore and offshore wind, to provide clean, reliable electricity to its customers.
TotalEnergies had an installed gross renewable power generating capacity of 22 GW at the end of 2023. With further growth, TotalEnergies plans to produce 35 GW of power in 2025 and more than 100 TWh of net electricity by 2030.
As all industries rapidly adopt renewable energy as an energy source, TotalEnergies' efforts to expand its renewable energy portfolio, including its latest JV with AGEL, are expected to strengthen its position in the expanding renewable energy market.
Peer Moves
Along with TTE, other companies like BP plc (BP - Free Report) , ExxonMobil Corporation (XOM - Free Report) and Equinor ASA (EQNR - Free Report) are also set to lower emissions and increase renewable energy operations.
BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity in a decade.
BP’s long-term (three to five years) earnings growth rate is 4%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 8.4%.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. By 2050, it intends to achieve a net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 4.6%.
EQNR is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacity from renewables from 4 GW to 6 GW by 2026.
EQNR’s long-term earnings growth rate is 2.04%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year decrease of 1.5%.
TTE’s Stock Price Performance
In the past six months, shares of TotalEnergies have risen 4.2% compared with the industry’s 3.2% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.