What's Happening?
Hinduja Renewables Energy Private Limited (HREPL), a part of the Hinduja Group, has entered into a long-term solar Power Purchase Agreement (PPA) with LG Electronics India (LGE India). This agreement aims to supply solar energy to LGE India's manufacturing
operations, specifically its Pune plant. The PPA involves a 9.80 MWp solar project that will generate 1.61 crore units of renewable energy annually, offsetting approximately 0.31 million metric tonnes of CO2 emissions over its lifetime. The energy will be sourced from HREPL's 27.7 MWp solar plant in Nanded, Maharashtra, and will meet 40% of the Pune facility's energy needs through renewable sources.
Why It's Important?
This partnership is significant as it represents a major step towards industrial decarbonization in India. By integrating renewable energy into its operations, LG Electronics India is aligning with global sustainability commitments and contributing to India's net-zero ambitions for 2070. The collaboration not only supports LGE India's sustainability goals but also enhances its operational efficiency and global competitiveness. For Hinduja Renewables, this agreement underscores its commitment to providing scalable green energy solutions and expanding its renewable energy portfolio, which is crucial for meeting the growing demand for round-the-clock renewable energy in India.
What's Next?
The agreement is set for a 25-year period and is expected to commence in the second quarter of 2026. This marks LGE India's first captive renewable energy project in the country and its first strategic investment in a power generation special purpose vehicle (SPV). Hinduja Renewables plans to expand its capacity further, with over 250 MWp under development in Maharashtra and plans to add over 1 GW capacity in the next 14-16 months across various Indian states. This expansion is part of a broader strategy to address the increasing demand for renewable energy solutions.
