DCM Shriram Ltd and ReNew Power have announced the signing of two captive power agreements (CPA) wherein ReNew Power will supply green power from its upcoming projects to DCM Shriram.
According to a company release, the CPAs will see 50 mw of renewable energy supplied from two of ReNew’s upcoming projects in Bhavnagar to DCM Shriram’s chlor-alkali manufacturing facility in Bharuch – both locations in Gujarat.
The combined transaction is one of the largest corporate renewable power supply deals in India under an OpEx (operating expenses) with a captive model.
The 50-mw hybrid project, which has around 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.
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ReNew will be setting up the two hybrid projects with a total investment of Rs.800 crore through an equity partnership of Rs.63 crore by DCM Shriram Ltd.
According to Ajay S. Shriram, Chairman & Senior Managing Director, DCM Shriram Ltd, “We as a group are committed to improving our energy footprint and this is a step in that direction. We are happy to collaborate with ReNew Power in our journey towards renewable energy for our Chlor-Alkali manufacturing facility at Bharuch, Gujarat.”
