TotalEnergies, Cathay and Dajia Insurance join forces to invest and operate 1.5 GW of solar power capacity for industrial customers in China
May 16, 2024
Asia
TotalEnergies is teaming up with a Chinese innovation investment fund co-developed by Cathay Capital and Dajia Insurance, to finance and operate solar power projects for commercial and industrial customers in China.
This joint venture is the first time TotalEnergies works with the first innovative fund product in China that deeply integrates with the industry and focuses on investing in commercial and industrial distributed photovoltaic as well as energy storage assets, also marking the Chinese Insurance company’s initial foray into this field. The establishment of this joint venture has strengthened the collaboration between Chinese and French enterprises, meanwhile, paved new avenues for the advancement of green finance.
The continuous efforts to invest on solar power project to broader Chinese customers will be based on TotalEnergies’ existing portfolio that already covers over 18 provinces in China, with more than 200 commercial and industrial customers, with a diversified presence including the automotive, manufacturing, consumer goods, and food sectors. This joint venture will continue to supply customers with green electricity for self-consumption on their sites through long-term power purchase agreements. The benefit of a solar power installation for commercial and industrial customers is the security of the green electricity supply with affordable price, as well as the strategic position to support commercial and industrial customers to reduce their carbon footprint in order to achieve sustainable growth target.
Over the past 5 years, TotalEnergies has seen rapid growth in its solar power capacity for commercial and industrial customers in China, reaching 500 MW installed capacity by the end of 2023. Cathay Capital, with a presence on four continents and an excellent network of business relationships in China, will bring its experience and expertise in private equity to the partnership. By joining forces, the joint venture aims to grow the portfolio from existing 500 megawatt (MW) of capacity already installed by TotalEnergies to 1.5 gigawatt (GW) by 2028.
“We look forward to continuing TotalEnergies’ renewable energy investments in China, helping our industrial customers diversify their energy sources and reduce their carbon footprint. China is the largest market for distributed solar generation and a cornerstone of our ambition to continue to grow in this renewable energy sector. The high quality of the portfolio, mutual trust and long-term relationships with our customers have been decisive. We also look forward to continuing a new chapter in our partnership with Cathay Capital, whose in-depth knowledge of the Chinese market will help accelerate the development of our joint venture” said Matthieu Langeron, VP of Distributed Generation at TotalEnergies.
Zhao Jing, Partner from Cathay Capital said: “Green infrastructure investment is crucial for future energy transitions. We are delighted to partner with TotalEnergies and Dajia Insurance to contribute to China’s sustainable future. The joint venture is the first innovative fund product in China that deeply integrates with the industry and focuses on investing in commercial and industrial distributed photovoltaic as well as energy storage assets. Through this initiative, we aim to strengthen Sino-French cooperation on sustainable development, seize new business opportunities in the energy sector, and provide effective decarbonization solutions for industrial players seeking to reduce emissions.”
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TotalEnergies and electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. In 2022, TotalEnergies generated more than 33 TWh of electricity, and had a gross renewable electricity generation installed capacity of 17 GW. TotalEnergies will continue to expand this business to grow its power generation to more than 100 TWh by 2030, with the objective of being among the world’s top 5 producers of electricity from wind and solar energy.
About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
About Cathay Capital
Cathay Capital Group is a global investment firm supporting companies at all stages throughout North America, Asia, Europe and Africa. By helping navigate the opportunities of globalization and sustainable transformation, Cathay is the partner of choice for companies aspiring to lead markets and make a positive impact. Its global platform connects people – from investors and entrepreneurs to management teams and leading corporations – across continents to share knowledge, the tools to scale, and achieve the extraordinary. Founded in 2007 with a strong entrepreneurial heritage, Cathay Capital now manages over $5B in assets, has completed over 280 buyouts, growth and venture capital investments with the global reach and local expertise from offices in Paris, Munich, Berlin, New York, San Francico, Shanghai, Beijing, Shenzhen and Singapore.
About Dajia Insurance
Dajia Investment Holdings Co., Ltd., is a professional alternative asset management platform under Dajia Insurance Group. The company has invested in and holds a number of high-quality core assets in several key Economic Zones, covering urban renewal, logistics and warehousing, industrial parks, etc. The company is also focusing on investments in new infrastructure assets such as data center, renewables, and multi-family. The company is dedicated to fostering high-quality development in the real economy, aligning its strategies with national priorities, major reforms, and infrastructure projects.