DCM Shriram Ltd and ReNew Power on Thursday (4 August) announced signing of two Captive Power Agreements (CPAs) to supply 50 MW of renewable energy from the ReNews’ two upcoming projects in Gujarat’s Bhavnagar to DCM Shriram’s Chlor-Alkali manufacturing facility in Gujarat’s Bharuch district.
The 50-MW hybrid project, which overall has nearly 100 MW of wind and solar generation capacity at its backend, is expected to generate around 250 million units of renewable energy every year exclusively for the DCM Shriram’s Bharuch facility, the company said in a statement.
The CPAs have been signed for 25 years and will mitigate around 2,25,000 tonne CO2e (carbon emissions) annually.
The combined transaction is one of the largest corporate renewable power supply deals in India under an OpEx (operating expenses) with a captive model.
ReNew will be setting up the two hybrid projects with a total investment of around Rs 800 crore through an equity partnership of Rs 63 crore by DCM Shriram.
Speaking on the occasion Ajay S Shriram, Chairman and Senior Managing Director, DCM Shriram Ltd said, “We are happy to collaborate with ReNew Power in our journey towards renewable energy for our Chlor-Alkali manufacturing facility at Bharuch, Gujarat.”
He added, “With a long term commitment towards ESG , the Captive Power Agreement for green energy has also been signed for 25 years and will mitigate ~2,25,000 tCO2e (carbon emissions) annually”.
Speaking on the CPAs, Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, said, “We are proud to partner with DCM Shriram, which is showing leadership in terms of moving to cleaner sources of energy and in addressing broader climate issues, as well as in supporting India’s ambitious climate goals”.