Hyundai Motor, Fourth Partner Collaborate For 118 MW RE Project

By Chitrika Grover/ Updated On Thu, Nov 21st, 2024

Highlights :

These projects can operate under the Group Captive Model to supply renewable energy to Hyundai Motors.

Hyundai Motor, Fourth Partner Collaborate For 118 MW RE Project

Fourth Partner Energy Private Limited (FPEL), through its Special Purpose Vehicle (SPV), FPEL Tamil Nadu (TN) Wind Farm Private Limited, recently signed Power Purchase Agreements (PPA)s with Hyundai Motors for both wind and solar power.

FPEL TN Wind Farm Private Limited, an SPV created by the Telangana-based Fourth Partner Energy, aims to enhance the company’s renewable energy portfolio. As part of this partnership, the SPV plans to establish a 75 MW solar power plant and a 42.9 MW wind power facility, with a combined capacity of 118 MW, in Tamil Nadu.

These projects will operate under the Group Captive Model to supply renewable energy to Hyundai Motors. Hyundai Motors can subscribe to a minimum of 26% equity in the SPV by investing approximately ₹38,05,07,400 in one or more tranches. The power producer can retain the rights to establish and operate the power plants, while Hyundai Motors can source solar and wind power from the SPV for a term of 25 years from the start of commercial operations.

Automobile Segment Goes Green

Several automobile companies are now working towards going green. Some of them have also tied up with solar and renewable companies to move towards sustainability. For example– Maruti Suzuki is also transitioning to green manufacturing practices at its Manesar and Kharkhoda facilities. The company expanded its solar capacity to 43.2 MWp in the fiscal year 2023-24. Meanwhile, it is on track to add 15 MWp solar capacity to its Manesar plant and 20 MWp to the upcoming Kharkhoda plant over the next two years.

This can boost the total solar capacity to reach 78.2 MWp by the fiscal year 2025-26. So far the company has earmarked Rs. 450 crore investment to expand the usage of renewable energy solutions in 3 years starting FY 2024-25. In a similar case, Tata Motors has also been adding significant renewable energy to its captive requirements, mostly in association with group firm Tata Power.