Bharti Airtel expands green energy footprint with stake in AMP Energy Green Three

Bharti Airtel, one of India’s largest telecommunications providers, has announced a pivotal move to deepen its sustainability efforts by acquiring a 26% stake in AMP Energy Green Three Private Limited. This ₹37.89 crore investment underscores Airtel’s commitment to reducing its carbon footprint, ensuring regulatory compliance, and aligning its operations with global environmental goals.

AMP Energy Green Three, a special purpose vehicle (SPV) established by AMP Energy Green Private Limited, is dedicated to renewable energy innovation. The SPV is currently developing a 50 MW hybrid wind-solar power plant in Barmer, Rajasthan. This cutting-edge project is slated to become operational by the second quarter of the fiscal year 2025-26, serving as a key energy source for Airtel and other industrial users.

The Strategic Move Toward Hybrid Renewable Energy

Airtel’s investment in hybrid renewable energy represents a forward-thinking approach to sustainable business practices. Hybrid power plants, which combine wind and solar energy generation, offer enhanced reliability and efficiency compared to standalone systems. This diversification in power sources allows greater energy stability, a critical factor for industries with high electricity demands.

The Barmer-based project will connect to the Power Grid Corporation‘s substation in Fatehgarh, enabling the distribution of green energy across India’s industrial corridors. By securing a 26% equity stake, Airtel ensures compliance with the Indian Electricity Act, 2003, which mandates a minimum ownership threshold for captive power projects. This move allows Airtel to benefit from cost-effective renewable power, reducing dependency on conventional energy sources.

Building on Airtel’s Sustainability Initiatives

Airtel’s renewable energy journey began years ago with a series of investments in solar power plants designed to meet the energy needs of its data centers and switching centers. In January 2022, the company commissioned a 21 MW solar plant in Maharashtra, significantly cutting carbon emissions and operational costs.

In 2023, Airtel expanded its green energy portfolio by committing to source 23,000 MWh of renewable energy for Nxtra, its data center subsidiary. Partnerships with renewable energy developers such as Continuum Green India and Vibrant Energy Holdings have further cemented Airtel’s position as a leader in green energy adoption within the telecom sector.

These initiatives reflect Airtel’s broader strategy to integrate sustainable energy solutions into its operations. The hybrid wind-solar project in Barmer is a natural progression of this strategy, offering a scalable model for clean energy adoption in India.

Challenges and Regulatory Framework

The completion of Airtel’s investment is contingent upon AMP Energy Green Three obtaining necessary approvals and licenses from regulatory authorities for open access to captive power consumption. Experts note that while such procedural hurdles are common in India’s renewable energy landscape, they highlight the complexities involved in scaling sustainable power projects.

Nonetheless, Airtel’s proactive approach in investing in hybrid renewable energy signals its readiness to overcome such challenges. The move not only fulfills regulatory requirements but also positions Airtel as a pioneer in integrating innovative energy solutions into its business operations.

Expert Insights: A Step Toward ESG Goals

Industry analysts have lauded Airtel’s stake in AMP Energy Green Three as a significant step in aligning with global Environmental, Social, and Governance (ESG) standards. Captive renewable energy consumption not only reduces operating costs but also enhances corporate credibility among ESG-focused investors.

Hybrid renewable energy projects like the one in Barmer are particularly valued for their ability to balance energy production across seasons, ensuring uninterrupted supply. Airtel’s involvement in such projects strengthens its reputation as a forward-thinking telecom giant that prioritizes environmental sustainability.

Market Sentiment and Broader Implications

Bharti Airtel’s focus on renewable energy has been well-received in the market. The company’s stock performance remains robust, with investors viewing its green energy investments as a strategic diversification aligned with long-term cost efficiency and global climate goals.

As the Barmer plant becomes operational, it is expected to play a crucial role in Airtel’s energy strategy, ensuring a steady supply of renewable power for its expansive telecom network.