DCM Shriram inks pact with ReNew Power to set up 50MW hybrid project in Gujarat

5 Aug 2022 , 11:50 AM

DCM Shriram Ltd, India’s leading renewable energy company, has announced signing of two Captive Power Agreements (CPAs), to supply 50 MW of renewable energy from its two upcoming projects in Bhavnagar in Gujarat, to DCM Shriram’s Chlor-Alkali manufacturing facility unit in Bharuch district, Gujarat.

As per the filing, the combined transaction is one of the largest corporate renewable power supply deals in India under an OpEx (operating expenses) with a captive model.

Speaking on the occasion, Ajay S. Shriram, Chairman and Sr. Managing Director, DCM Shriram Ltd. said, “Our group is committed to improve our energy presence all over and this is a crucial step in that direction. We are super happy to partner with ReNew Power for our Chlor-Alkali manufacturing facility at Bharuch.”

He further added, “The Captive Power Agreement for green energy has been signed for 25 years long years and will mitigate ~2,25,000 tCO2e (carbon emissions) annually.”

As per the filing, the 50-MW hybrid project, which overall has ~100 MW of wind and solar generation capacity at its backend, is expected to generate approx 250 million units of renewable energy every year exclusively for Company's Bharuch facility. The CPAs have been signed for 25 years and will mitigate ~2,25,000 tCO2e (carbon emissions) per year.

ReNew will be establishing the two hybrid projects with a total investment of approx Rs8 billion through an equity partnership of ~ Rs630 million by DCM Shriram Ltd.

At around 11:49 AM, DCM Shriram per share trading at Rs1,055.50 up by Rs8.2 or 0.78% from its previous closing of Rs1,047.30 per share on the BSE.