Solar engineering, procurement, and construction company Mahindra Susten, in collaboration with the Ontario Teachers’ Pension Plan Board, said it will develop a 150 MW hybrid renewable power project involving an investment of ₹12 billion (~$143.8 million).

The project will comprise ~101 MW of wind and ~52 MW of solar capacity, the company said in a bourse filing.

Scheduled for commissioning within the next two years, it will incorporate over 80% locally manufactured components.

Upon completion, the project will supply clean energy to commercial and industrial customers in Maharashtra, generating around 460 million kWh of energy and offsetting nearly 420,000 tons of CO2 emissions.

The Auto and Farm businesses of the Mahindra Group will secure a contracted capacity of 41.2 MW of wind and 25.9 MW of solar within this project. This portion is estimated to produce approximately 197 million kWh of energy annually, averting 184,000 tons of CO2 emissions.

It is projected to elevate the Mahindra Group’s renewable energy share from 34% in fiscal year (FY) 2023 to over 60% by FY26. Furthermore, Mahindra aims to transition into a 100% renewable energy company by 2030.

“Energy transition is a key global and national priority to address climate change. This project is a tangible example of our commitment to sustainability as a consumer of green power and building ‘Planet Positive’ businesses as the project developer. It also demonstrates a clear economically accretive business case and Group synergy. The project marks a key milestone in Mahindra Group’s continued investments in building and scaling its green portfolio,” said Anish Shah, CEO and MD of Mahindra Group.

In January, Mahindra Group and Ontario Teachers’ Pension Plan Board announced the Sustainable Energy Infra Trust with an initial capital raise of ₹13.65 billion ($165 million) to advance the renewable energy sector in India. The companies claimed the trust is the largest of its kind, holding about 1.54 GW of operational renewable power assets.

Ontario Teachers’ Pension Plan Board acquired a 30% equity stake in Mahindra Susten for an equity value of ₹23.71 billion (~$300 million) in September 2022.