HeidelbergCement India signs Rs 48m PPA for procuring solar power

HeidelbergCement India Limited said that it has inked a long-term power purchase agreement (PPA) with Lalganj Power Private Limited for procuring nearly 22GWh per annum of solar energy under a captive arrangement for its cement factory in Jhansi, Uttar Pradesh.

The solar energy will be supplied by Lalganj Power Private Limited’s solar power plant in Madara village in Jhansi district.

HeidelbergCement India will subscribe to 3,636,364 equity shares of INR 10 each of Lalganj Power Private Limited at a premium of INR 3.2 per share, totaling INR 48 million for procuring the solar power.

The subsidiary of Germany-based HeidelbergCement Group said that the supply of electricity is expected to begin from the quarter ending December 2021. It will cover nearly 25% of the annual electricity demand of the cement factory in Jhansi, said HeidelbergCement India.

HeidelbergCement India signs Rs 48m PPA for procuring solar power. Photo courtesy of PublicDomainPictures from Pixabay.

The building materials company said that compared to existing sources, the electricity supply will be economical and will somewhat replace the electric power bought under short term open access and from grid.

The expected savings in CO2 emissions by procuring solar energy will be around 400,000 tonnes over the life of the contract, said HeidelbergCement India.

Jamshed N Cooper — Managing Director of HeidelbergCement India said: “HeidelbergCement India Limited reaffirms its commitment to reduce carbon emissions and spearhead in its sustainability initiatives.”