TotalEnergies has unveiled its plans to divest a 50% of its 234MW renewable projects portfolio to Crédit Agricole Assurances, an insurance arm of Crédit Agricole in France.

The transaction, which forms part of the company’s renewable energies strategy, includes 23 solar power plants with a capacity of 168MW and six wind farms with a capacity of 67MW.

Among the 29 power plants included in the transaction, 25 are already operational (180MW) and the four (54MW) will be commissioned in the first half of 2023.

The power plants can provide adequate energy for 200,000 people and will eliminate around 96,000 tons of CO2 emission annually, for three decades.

Crédit Agricole Assurances investments head Florence Barjou said: “This transaction is in line with our strategy as a long-term institutional investor in the acceleration of renewable energies, in favour of the energy transition and a low-carbon economy.

“In line with the Crédit Agricole Group’s climate commitments, this transaction will increase our investments in renewable energies and help us reach an installed capacity of 14GW by 2025.”

The transaction values the company’s 234MW portfolio of renewable projects at $300m.

TotalEnergies said that the partial sale to Crédit Agricole Assurances is in line with its business model for renewable energy development.

It will help advance the company’s project cash flows and improve the return on invested capital

TotalEnergies will continue to provide the asset management, operation, and maintenance of all 29 power plants.

TotalEnergies Renewables senior vice president Vincent Stoquart said: “This partial sale demonstrates the strength of our business model, which ensures a return on invested capital in renewable energies of more than 10%.

“We are pleased to partner with Crédit Agricole Assurances and support its investment in the energy transition.

“With its strong teams and business model, TotalEnergies intends to continue its development in France where we aim to reach 4GW of renewable generation capacity by 2025.”