Ambuja Cements, a cement company under Adani Group, has invested ₹60 billion (~$723 million) in renewable energy projects with a capacity of 1,000 MW. The projects will be a combination of both wind and solar projects located across Gujarat and Rajasthan.

With this investment, the company will install 600 MW of solar projects, 150 MW of wind projects in Gujarat, and a 250 MW solar project in Rajasthan by the financial year (FY) 2025-26.

The renewable capacity will be added in phases to achieve 284 MW by FY24, 640 MW by FY25, and 1,090 MW by FY26.

The company has an existing 84 MW of wind and solar capacity.

Ambuja aims to increase its green energy share among its competitors by reaching 60% of the planned capacity of 140 metric tons per annum (MTPA) from the current 19%.

Post the implementation of the projects, the company expects the cost of power to go down to ₹5.16 (~$0.06) per kWh from ₹6.46 (~$ 0.07)per kWh. A reduction of ₹1.30 per kWh (20%) is expected to translate into ₹90 per metric ton of cement by FY 2028.

The project will also accelerate the company’s Environmental, Social, and Governance (ESG) plans.

The company has also proposed to increase its Waste Heat Recovery Systems (WHRS) capacity from 103 MW to 397 MW over the next five years, aiming to reduce power costs further.

The WHRS capacity will be increased in phases – 134 MW by FY24, 195 MW by FY25, 208 MW by FY26, and 250 MW by FY27.

“This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry. They align not only with our growth trajectory but also with the national objective of de-carbonization and a greener future, and this helps us become competitive and sustainable. The adjacencies within the Group will further catalyze benefit realization.”- Ajay Kapur, CEO, Cement Business.

As projected by the Credit Rating Agency, green power will account for 40-42% of the total power mix of major cement companies in India by March 2025, significantly increasing from around 35% as of March 2023.

According to the recently published Q3 2023 Mercom India Solar Open Access Market Report, India witnessed a surge in solar open access installations with the addition of 907 MW in the third quarter of 2023, a 36.1% increase. The increase in installations was mostly driven by commercial and industrial consumers deploying solar to cut power costs and meet their ESG targets.