Diversified business group DCM Shriram Limited has signed two captive power agreements with ReNew Power for the supply of 50 MW of renewable energy from the latter’s two upcoming projects in Bhavnagar, Gujarat.

The power will be supplied to DCM Shriram’s Chlor-alkali production facility in the Bharuch district of the state.

The 50 MW hybrid project is expected to generate about 250 million units of renewable energy annually for DCM Shriram’s Bharuch facility.

ReNew Power will deploy the hybrid project with a total investment of ₹8 billion (~$101 million) with an equity investment of ₹630 million (~$7.49 million) from DCM Shriram.

The transaction is deemed one of India’s largest corporate renewable power supply deals under the operating expenses (OPEX) mode.

The captive power agreements have been signed for 25 years and would mitigate around 225,000 tonnes of carbon emissions every year.

Chairman and Senior Managing Director of DCM Shriram Ajay S. Shriram said, “We as a group are committed to improving our energy footprint, and this is a step in that direction. With a long-term commitment towards ESG (environmental, social, and governance), the Captive Power Agreement for green energy has been signed for 25 years and will mitigate ~2,25,000 tCO2e (carbon emissions) annually.”

Many large and medium commercial and industrial entities are opting to source renewable energy from open access projects to save on their power bills and as part of their commitment to reducing carbon emissions from their operations.

Corporate consumers have signed agreements with ReNew to trade renewable energy credits or purchase clean energy for 491 MW at tariffs ranging from ₹3.06-₹3.95 (~$4.0-~$5.2)/kWh. The corporates include large US-based global tech majors, Grasim Industries (Aditya Birla Group), and Netmagic (a subsidiary of NTT Communications, Japan). ReNew’s overall corporate portfolio is now over 900 MW, making it one of the largest renewable energy solutions providers for corporates. The assets would be set up in Rajasthan, Maharashtra, and Gujarat.

ReNew Power is also in the process of acquiring over 500 MW of operating wind and solar assets. Of this, operating wind assets total 471.65 MW and solar assets 56.25 MW, taking the total capacity to 527.9 MW. The acquired assets are spread across eight states with a total enterprise value of around ₹30 billion (~$388 million).