Photovoltaic modules manufacturer First Solar has entered into a 15-year captive power purchase agreement (PPA) with Cleantech Solar, a renewable energy solution provider, to set up 150 MW of solar and 16.8 MW of wind power generating projects in Tamil Nadu.

These projects will supply approximately 7.3 GWh of clean electricity to First Solar’s new 3.3 GW vertically integrated solar manufacturing facility, also located in Tamil Nadu.

Further, Cleantech Solar has agreed to procure 150 MW of series 7 thin film solar modules from First Solar, which is expected to be delivered in the first half of 2024.

“Our new manufacturing facility in Tamil Nadu sets a high benchmark for responsible and sustainable vertically integrated solar manufacturing, not just in India, but globally. By powering our operations with clean, renewably-generated electricity, we are working to further reduce our environmental footprint, which is already the lowest in the industry,” said Sujoy Ghosh, Vice President and Managing Director of First Solar, India.

When fully commissioned by the third quarter of 2024, these projects will provide up to 70% of the facility’s anticipated electricity needs.

The company claims its Tamil Nadu-based plant is the world’s first net-zero water withdrawal solar manufacturing facility. It is designed to minimize its impact on local water resources and will rely entirely on tertiary-treated reverse osmosis water from the city’s sewage treatment plant and have zero wastewater discharge.

In the third quarter of 2023, First Solar’s net profit rose to $268.4 million during Q3 2023. The surge was attributed primarily to the higher average selling prices of solar modules.

With a $1.1 billion investment, the company also announced plans to establish a solar module manufacturing facility in the U.S. in addition to its four existing ones.

Earlier this year, Cleantech Solar also commissioned a 37 MW solar power project in Maharashtra to supply power to a global industrial manufacturing firm through open access under the captive model.