Indian Hotels Company Limited (IHCL) announced that it signed a power purchase agreement (PPA) with TP Kirnali Solar Limited, a wholly-owned subsidiary of Tata Power Company Limited. Under the agreement, Tata would provide renewable energy for IHCL’s Mumbai-based hotels for 25 years.
According to the press release, IHCL-owned hotels in Mumbai like The Taj Mahal Palace, Taj Lands End, and Taj Wellington Mews will source 60% of its requirement from renewable energy. This, in turn, would help reduce approximately 22.9 million kilograms of carbon dioxide emissions annually, it added.
“Presently, the association is limited to IHCL properties in Mumbai, and we look forward to working closely with them for covering all their facilities across India,” said Praveer Sinha, Managing Director and Chief Executive Officer of Tata Power Company Limited.
IHCL said that it had expanded its renewable energy mix portfolio from 7% to 25% in the last four years.
“This initiative is in line with the company’s focus on adopting sustainable and cost-efficient business practices while leveraging group-wide synergies and competencies. We are pleased to collaborate with Tata Power, which is a leader in clean energy generation,” said Puneet Chhatwal, Managing Director and Chief Executive Officer of IHCL.
According to Mercom’s India Solar Project Tracker, Tata Power Company Limited currently has 1.75 GW of large-scale solar projects in operation and 1.3 GW under the development pipeline.
Since the COVID lockdown in March, the commercial and industrial rooftop segment has witnessed a severe downturn. However, installers are seeing demand pick up from select sectors like automobiles, IT, pharma, textiles, and Fast Moving Consumer Goods (FMCG). With this deal, the hospitality market is also beginning to show signs of life, which is good news for the rooftop market.
Previously, it was reported that Oberoi and Trident hotels in Gurgaon switched to solar power to fulfill their energy demands.
Image credit: Taj