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Filatex India, a polyester filament yarn manufacturer, has entered into agreements with 100% subsidiaries of distributed solar company Fourth Partner Energy to procure renewable energy from the latter’s hybrid wind-solar open access power project as a captive consumer.
Filatex signed a power purchase agreement (PPA) and a shareholders agreement with FP Crysta Energy and FPEL Sunrise.
The project developed under Gujarat’s Hybrid Wind-Solar Power Policy 2018 is scheduled for commissioning by March 2023.
The yarn producer said that textile manufacturing is an energy-intensive industry. It aims to reduce the cost of energy required for textile manufacturing through the agreements.
Filatex will invest ₹103 million (~$1.29 million) for a 26% stake in the project to attain the captive status. The PPA will be valid for 25 years.
The company will source 10.8 MW of wind and 10.8 MWp of solar energy from the hybrid project, totaling about 50 million units of energy.
It targets savings of over ₹100 million (~$1.26 million) annually. Filatex also aims to mitigate its carbon emissions from operations through the project.
Filatex India has opted for renewable energy in the past as well. In January 2021, it started the commercial operation of its captive rooftop solar power projects at Dahej and Dadra. The project at Dahej was rated at 1 MW capacity, and the Dadra project 400 kW.
Companies are increasingly opting to source power from open access renewable energy projects to lower their power bills. Open access has helped power generators and consumers to negotiate tariffs to their mutual advantage rather than having to agree to fixed tariffs. Consumers have the added advantage of not having to operate and maintain the projects.
Mercom India recently hosted the C&I Clean Energy Meet 2022 in Bengaluru to discuss how open access renewables are an attractive option for industries needing low-cost power. It is hosting similar events in Pune, Chennai, Coimbatore, Ahmedabad, and Noida this year.