ReNew Power Signs PPA With Meghmani Finechem For Hybrid Project

Meghmani Finechem Limited (MFL), a leading manufacturer of Chlor-Alkali and its value added derivatives, on May 28 announced that it has entered into agreements with Renew Green Energy Solutions Pvt Ltd for setting up a wind-solar hybrid power project.

Meghmani Finechem has executed an Energy Subscription Agreement (ESA) and Share Subscription and Shareholder Agreement (SSSHA) for putting up an 18.34 MW wind-solar hybrid power plant in Gujarat under a Special Purpose Vehicle (SPV) with Renew Green Energy Solutions Pvt Ltd.

MFL will hold 26% stake in the SPV for a contribution of Rs 20.54 crore and ReNew Green Energy Solutions Pvt Ltd will contribute Rs. 58.46 crore for a 74% stake. This hybrid power plant is expected to be commissioned in Q3FY23. As per the terms of the agreement, the power generated from the plant will be supplied exclusively to MFL under the captive status for tenure of 25 years.

This arrangement is a step towards entering into the green/renewable energy sector thus reducing carbon footprint and conserving t he environment. This hybrid power plant will help MFL meet the energy requirement of its existing as well as future projects. The cost per unit of electricity through this hybrid power plant will be lower than the power procured from the electricity grid.

Commenting on the arrangement Maulik Patel; Chairman and Managing Director – MFL said “At Meghmani Finechem, our team is focused on protecting the environment by using the best and latest technology. We endeavour to further strengthen our position in protecting the environment by getting into green energy (Wind-Solar Hybrid Power Plant). The Hybrid Power Plant will help us to meet our additional electricity demand and will also allow us to produce Green Hydrogen, supporting the Government of India’s initiative of Green Energy and Green Hydrogen.”

For ReNew Power, the deal adds to the corporate PPA portfolio it has started building up, as declared by Chairman and Founder Sumant Sinha last year. The firm, listed at NASDAQ, has made it clear that it sees a market with high potential in the corporate PPA market, and will seek to win a significant share of the same.