Opportunities for captive solar power for companies to optimize their energy cost

Solar captive power projects are gaining immense popularity in India as more and more industries are realizing the benefits of investing in these projects. Captive solar power plants are those that generate electricity for a single user, such as an industry or a commercial establishment, for their own consumption, rather than supplying it to the grid. The following are some recent deals in the captive solar power sector:

1. Hinduja Renewables developed a 75 MWp captive solar project for Ashok Leyland in February 2021: Ashok Leyland is a leading commercial vehicle manufacturer in India, and this project will help the company meet its energy requirements and reduce its carbon footprint.
2. Godawari Power & Ispat Ltd announced plans to set up a 250 MW solar power plant in Raigarh, Chhattisgarh in May 2021: The project will cater to the captive power requirements of the company’s steel plant in Raigarh.
3. Bharti Airtel completed a 14 MWp captive solar plant in Uttar Pradesh in April 2021: This project will help the company meet the power requirements of its core and edge data centers in the state.
4. Shree Cement plans to construct 106 MW of solar power projects to meet the captive power needs of its cement manufacturing facilities at various locations.
5. Mahindra & Mahindra signed a PPA with ReNew Green Energy Solutions to procure solar power from its 43 MW open access project in Maharashtra in July 2021: The power generated from this project will be used to meet the captive power requirements of Mahindra & Mahindra’s manufacturing facilities in Maharashtra.
6. Birla Corp’s arm RCCPL commissioned a 40 MW captive power plant at Mukutban, Maharashtra in January 2022: The project will cater to the captive power requirements of RCCPL’s cement manufacturing facility in Mukutban.
7. Southern Petrochemicals Industries Corp Ltd’s captive floating solar power plant formally went on stream at Tuticorin in March 2022: The project will help the company meet the captive power requirements of its Tuticorin plant.
8. Hindustan Zinc entered into a long-term captive renewable power development plan with a capacity of 200 MW in April 2022: The power generated from this project will be used to meet the captive power requirements of Hindustan Zinc’s mining operations in Rajasthan.
9. Tamil Nadu Cement Corp Ltd announced plans to set up a 10 MW solar power plant at an outlay of INR65 Cr for captive use in April 2022: The project will help the company meet the captive power requirements of its cement manufacturing facility in Tamil Nadu.
10. IOCL invited bids for EPC of 1.2 MW grid-connected captive solar project with a net metering facility at its LPG bottling plant at Sanand in Ahmadabad, Gujarat in May 2022: The project will cater to the captive power requirements of the LPG bottling plant.
11. Cipla announced commercial operation of a captive renewable energy power plant in Maharashtra and Karnataka in June 2022: The project will help the company meet the captive power requirements of its manufacturing facilities in Maharashtra and Karnataka.

These deals indicate a growing trend among industries to invest in captive solar power projects to meet their energy requirements. Captive solar power projects offer a range of benefits, including cost savings, energy security, and environmental sustainability. Captive solar power projects provide electricity at a much lower rate of INR5.0-6.0/kWh compared to INR8.0-9.0/kWh offered through the grid. Additionally, captive solar power projects reduce the dependence of industries on grid power, which can be unreliable in many parts of India.