27-Dec-2023
2 mins read
This partnership extends beyond financial terms, strengthening the collaborative relationship between AGEL and TotalEnergies. It proves TotalEnergies’ dedication to helping AGEL achieve a capacity of 45 GW by 2030. AGEL views this joint venture positively, anticipating a considerable enhancement in its renewable energy projects.
Enhancing Cooperation for Eco-friendly Progress
This partnership extends beyond mere financial terms, representing a strengthened collaborative relationship between AGEL and TotalEnergies. It serves as proof of TotalEnergies’ dedication to helping AGEL achieve a capacity of 45 GW by 2030. AGEL views this joint venture positively, anticipating a considerable enhancement in its renewable energy projects.
Resource Sharing and Stake Acquisition
AGEL has reassigned various assets to the joint venture in this strategic agreement, encompassing 300 MW of already operational capacity, 500 MW currently under construction, and 250 MW in the planning phase. In return, TotalEnergies has attained a 50% share in this new venture.
Positive Market Reaction and Future Outlook
AGEL’s share prices saw a 1.4% increase on BSE, hitting Rs 1621.85 at 10:13 IST, following the joint venture news, outperforming the Benchmark Sensex. With its vast portfolio in solar, wind, and hybrid power plants of 8.4 GW, AGEL sees this venture as an expansion of TotalEnergies’ existing 19.7% stake.
Setting Ambitious Goals and Securing Funding
AGEL’s CFO, Phuntsok Wangyal, confirmed the continued partnership with TotalEnergies in a recent investor call. The company is on track to achieve its 45 GW capacity goal by 2030, having recently raised $3 billion through promoter’s infusion of Rs 9,350 crore and a $1.4 billion debt.
Focusing on Growth and Debt Management
The raised funds will be utilized for capital expenditure and reducing the company’s net debt, which has already fallen from Rs 40,455 crore to Rs 38,190 crore. AGEL has laid out plans for projects totalling 20.6 GW and secured vast land to facilitate these initiatives.
This strategic joint venture between AGEL and TotalEnergies is a pivotal move in the global renewable energy sector, emphasizing the role of international partnerships in achieving sustainable energy objectives.