Total Quadran, Total’s 100% renewable power geneation subsidiary in France, has sold half of its equity stakes in two renewable energy portfolios to Banque des Territoires and Crédit Agricole Assurances. Banque des Territoires has acquired a 50% stake in a 53 MW portfolio comprising of 8 solar farms in New Caledonia. Meanwhile, Crédit Agricole Assurances has acquired a 50% stake in a 285 MW portfolio comprising of 9 wind farms with a total capacity of 103 MW and 44 solar power plants with a total capacity of 182 MW.
The total enterprise valuation of the 338 MW of renewable power capacity is roughly $600 million for 100%. These transactions will assist in derisking the group portfolio, accelerate cash flow recognition and increase the return on equity.
“These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity. We are delighted to deepen our partnerships with both Banque des Territoires and Crédit Agricole Assurances” said Julien Pouget, Senior Vice President Renewables of Total.
Total aims to reach net zero by 2050 with renewables and electricity accounting for up to 40% of its sales by 2050. The company’s installed global power generation capacity was around 12 GW at the end of 2020, out of which 7 GW was renewable energy. Its plans to have 35 GW of renewable energy production capacity by 2025. Its French subsidiary, Total Quadran, operates over 300 renewable energy plants in France totaling nearly 900 MW.
Crédit Agricole Assurances is a leading insurance company in France while Banque des Territoires is one of the five business lines of Caisse des Dépôts that was created in 2018 to offer tailor-made advisory and financing solutions in loans and investments for local authorities, social housing organizations, local public companies and the legal professions.