French energy company Total is working towards ensuring a smooth inflow of finance for its renewable energy portfolio while de-risking the same. In line with this strategy, its renewable energy subsidiary Total Quadran has divested a 50% stake in several of its solar and wind energy projects to raise close to $600 million.
Picking up a 50% stake in a portfolio of 9 wind farms with 103 MW and 44 solar power plants with 182 MW aggregate capacity is French insurance provider Crédit Agricole Assurances. Banque des Territoires, part of the French Sovereign Fund Caisse des Dépôts Group, is acquiring a stake in a portfolio of 8 solar parks of Total Quadran in New Caledonia representing 53 MW capacity.
In January 2020, Banque des Territoires acquired a 50% equity share in a 143 MW solar and wind portfolio of Total Quadran for €300 million (see Total Sells 50% Stake In French Solar Wind Assets).
Total says this disinvestment in close to 340 MW renewable energy capacity makes it possible for it to de-risk the renewables portfolio, accelerate project cash flows and improve return on invested capital.
"These equity investments in our project portfolios are the implementation of the economic model that we have defined for the development of renewable energies aimed at achieving a return on our invested capital greater than 10%," said Total's Director of Renewables, Julien Pouget.
Primarily an oil and gas company, Total has been diversifying into renewables to reach its carbon neutrality targeted for 2050. At the end of 2020, 7 GW of renewables accounted for around 12 GW of the group's gross electricity production capacity. By 2025, it aims to increase the share of renewables in its production to 35 GW.