Masdar and TotalEnergies partner to capture Asia’s growing electricity demand

Two major energy players, TotalEnergies and Masdar, have agreed to establish a joint venture to merge their onshore renewable activities across nine countries in Asia.

The portfolio will comprise 3GW of operational assets and 6GW of assets in advanced development that are expected to be operational by 2030.

Once the $2.2 billion agreement is closed, the venture will act as the sole vehicle via which both companies will develop, build, own and operate onshore wind, solar and storage projects in the following countries: Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented in a statement that both TotalEnergies and Masdar are looking to build a renewable energy champion at a time when electricity demand is accelerating across Asia.

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Said Pouyanné: “[The agreement] will allow us to combine the strengths of our two companies to secure significant positions in these markets and create more value than if we were acting alone. This agreement is fully in line with the renewable energy strategy of our Integrated Power business.”

His Excellency Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, added: “Asia will be the main driver of global electricity demand growth this decade, and this collaboration with TotalEnergies will accelerate our progress across the continent, unlocking new opportunities to deliver the competitive, reliable energy solutions that our partners and customers need.”

The joint venture will be headquartered in Abu Dhabi Global Market, with the management team to be announced at a later date.

According to independent think tank Ember, Asia is experiencing faster electricity demand growth than any other region, at about 5% per year. Rising electricity demand makes it challenging to reduce reliance on fossil fuels, although renewable energy investment is increasing and now significantly outweighs fossil fuel investment in the region.