DCM Shriram Ltd. (DCM Shriram), a leading business conglomerate with a group turnover of Rs. 9,849 crore, and ReNew Power, India’s major renewable energy company, has announced signing of two Captive Power Agreements (CPAs) that will see 50 MW of renewable energy supplied from ReNew’s two upcoming projects in Bhavnagar, Gujarat, to DCM Shriram’s Chlor-Alkali manufacturing facility in Bharuch district, Gujarat.

The combined transaction is one of the largest corporate renewable power supply deals in India under an OpEx (operating expenses) with a captive model.

Speaking on the occasion Ajay S. Shriram, Chairman and Sr. Managing Director, DCM Shriram Ltd. said, “We as a group are committed to improving our energy footprint and this is a step in that direction. We are happy to collaborate with ReNew Power in our journey towards renewable energy for our Chlor-Alkali manufacturing facility at Bharuch, Gujarat.”

“With a long-term commitment towards ESG, the Captive Power Agreements for green energy have been signed for 25 years and will mitigate ~2,25,000 tCO2e (carbon emissions) annually,” added Shriram.

Speaking on the CPAs, Sumant Sinha, Founder, Chairman, and CEO of ReNew Power said, “We are proud to partner with DCM Shriram, which is showing leadership is moving to cleaner sources of energy and in addressing broader climate issues, as well as in supporting India’s ambitious climate goals."

"We are confident that more and more responsible corporations such as DCM Shriram will move to renewables at an accelerated pace, as it not only shows a focus on sustainability concerns that are critical but also reflects that green energy is increasingly cost-effective for businesses,” added Sumant.

The 50-MW hybrid project, which, overall, has around 100 MW of wind and solar generation capacity at its backend, is expected to generate around 250 million units of renewable energy every year exclusively for the DCM Shriram’s Bharuch facility.

ReNew will be setting up the two hybrid projects with a total investment of around Rs. 800 crore through an equity partnership of Rs. 63 crore by DCM Shriram Ltd.