Tata Power Renewable Energy Limited (TPREL) has partnered with Sanyo Special Steel Manufacturing India Private Limited (SSMI) to set up a 28.12-megawatt green energy plant in Maharashtra.
In a statement on Thursday, TPREL, an arm of Tata Power, said it has signed the Power Delivery Agreement (PDA) with SSMI through its Special Purpose Vehicle (SPV) TP Alpha Limited.
"TPREL joins hands with SSMI for setting up of 28.125 MW AC (39.375 MWp) captive solar plant in Aachegaon under district Solapur, Maharashtra," the statement said.
The plant is expected to produce 61.875 million units (MUs) of electricity annually, which would meet the energy requirement of steel manufacturing unit of SSMI.
It will also help to reduce SSMI's carbon footprint by 42,534 tonnes annually.
The project will be commissioned by March 2024, as per the arrangement.
This project aligns with SSMI's long term strategy towards climate change by reducing dependency on fossil fuel-based energy, lower the carbon footprint and manufacture green steel.
Ashish Khanna, CEO of Tata Power Renewable Energy Limited, stated, "These initiatives yield advantages like cost reduction, lower emissions, enhanced energy security, and alignment with sustainability targets. The government's prioritisation of captive power projects, driven by their economic and environmental merits, highlights their significance for various industries."
Dilipkumar Pachpande, Managing Director of Sanyo Special Steel Manufacturing India Pvt Ltd, said: "This collaboration perfectly describes our commitment towards the clean and green energy solutions, which not only aligns with our goals towards climate change and sustainable development but also significantly benefits the steel manufacturing unit by reducing CO2 emissions and costs, enhancing sustainability, and contributing to carbon neutral goals by producing green steel."