Filatex India Signs PPA To Purchase Renewable Energy

Filatex India Ltd, has signed a PPA with FP Crysta Energy Pvt Ltd and an SHA with FPEL Sunrise Pvt Ltd. The agreements have been signed under Gujarat’s Hybrid Wind-Solar Power Policy 2018 to mitigate the cost of energy from the grid that has constantly been on the rise and while also keeping in mind that the textile manufacturing industry is energy intensive. 100 per cent subsidiaries of Fourth Partner Energy Pvt Ltd are to purchase renewable energy as captive consumer from their hybrid wind-solar open access power project.  The company will need to make an investment worth Rs 10.35 crores for a 26 per cent project stake to acquire captive status.

The PPA will be effective for a period of 25 years.

The company will source 10.8 MW of wind and 10.8 MWp of solar. This will bring up the total to about 50 million units of energy per year, thereby resulting in saving of over Rs 10 crores every year. It will also help minimize the carbon footprints of the company.

The project will be commissioned by 31st March next year.

Gujarat’s Hybrid Policy 2018 Ushering Investments

In 2018, Gujarat became the first state that declared a hybrid policy. The policy has facilitated investments in hybrid plants by the corporates since it makes way for incentives that include a waiver on electricity duty.

In February this year, the state woke up to its first wind-solar hybrid plant that was set up by ReNew Power. 

Investors have been readily eyeing Gujarat to set up plants, thanks to the state’s long coastline and good speeds of wind that make it ideal for the purpose. That apart, the state boasts of rich solar energy, with solar radiation ranging from 5.5-6 kilowatt-hour (kWh) per square meter per day. A wide power network further make it more attractive for investments.