A 28.12-megawatt green energy facility will be built in Maharashtra through a partnership between Tata Power Renewable Energy Limited (TPREL) and Sanyo Special Steel Manufacturing India Private Limited (SSMI).
In a statement on Thursday, TPREL, an arm of Tata Power, said it has signed the Power Delivery Agreement (PDA) with SSMI through its Special Purpose Vehicle (SPV) TP Alpha Limited.
“TPREL joins hands with SSMI for setting up of 28.125 MW AC (39.375 MWp) captive solar plant in Aachegaon under district Solapur, Maharashtra,” the statement said.
The plant is expected to produce 61.875 million units (MUs) of electricity annually, which would meet the energy requirement of the steel manufacturing unit of SSMI.
It will also help to reduce SSMI’s carbon footprint by 42,534 tonnes annually.
The project will be commissioned by March 2024, as per the arrangement.
This project aligns with SSMI’s long-term strategy towards climate change by reducing dependency on fossil fuel-based energy, lower the carbon footprint and manufacture green steel.
Ashish Khanna, CEO of Tata Power Renewable Energy Limited, stated, “These initiatives yield advantages like cost reduction, lower emissions, enhanced energy security, and alignment with sustainability targets. The government’s prioritisation of captive power projects, driven by their economic and environmental merits, highlights their significance for various industries.” Dilipkumar Pachpande, Managing Director of Sanyo Special Steel Manufacturing India Pvt Ltd, said: “This collaboration perfectly describes our commitment towards the clean and green energy solutions, which not only aligns with our goals towards climate change and sustainable development but also significantly benefits the steel manufacturing unit by reducing CO2 emissions and costs, enhancing sustainability, and contributing to carbon neutral goals by producing green steel.”
Currently, shares of the company are trading 0.30% up at Rs. 248.10.
TRPEL’s total revenue grew by 5.7% YoY from Rs. 14,384.55 Cr in Q1 FY23 to Rs. 15,484.71 Cr in Q1 FY24, for the same period net profits grew by 87% YoY from Rs. 178.52 Cr to Rs. 334.58 Cr.
Electricity is produced, transmitted, and distributed by the integrated power utility known as Tata Power Co Ltd (Tata Power). Thermal power plants, hydro, solar, and wind power producing facilities are all part of its power generation infrastructure.
