New Delhi: Vardhman Textiles Limited expects to meet around 56 percent of its power requirements with renewable energy under a power delivery agreement (PDA) it has signed with Serentica Renewables. SK Jhamb, Director (Raw Material) and Chief Sustainability Officer at Vardhman Textiles, gave the figure in a statement issued on Monday. Under the agreement, Vardhman Textiles will acquire a minimum 26 percent equity stake in Serentica's special purpose vehicle (SPV), SRIPL 32.
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The project will have a total installed capacity of 80 MW. Of this, 40 MW will be wind capacity in Gadag, Karnataka, and 40 MW will be solar capacity in Fatehgarh, Rajasthan. The companies expect the project to achieve a capacity utilisation factor (CUF) of about 75 percent. It will supply 177 million units of round-the-clock (RTC) renewable power to Vardhman Textiles' facilities in Himachal Pradesh. The statement describes Vardhman Textiles as India's largest vertically integrated textile manufacturer, with production facilities across the country.
Jhamb tied the agreement to Vardhman's efforts to cut greenhouse gas (GHG) emissions. "Our 27 MW wind-solar hybrid PDA with Serentica marks an important milestone in Vardhman's efforts to reduce GHG emissions and accelerate the adoption of renewable energy across our operations," he said.
He also gave the share of the company's power needs that the deal would cover. "The PDA will enable us to meet around 56 percent of our power requirements through green energy. This significant increase in the use of renewable power will contribute meaningfully to reducing our carbon footprint by 125883 MT and advancing our long term decarbonisation goals," Jhamb said.
"Our partnership with Serentica reinforces Vardhman's commitment to climate action and to building more sustainable manufacturing operations," he added.
Shilpy Dewan, Chief Business Officer of Serentica Renewables, said industrial users now need more than added capacity. "We are pleased to partner with Vardhman Textiles in advancing its decarbonisation journey. This partnership demonstrates that industrial decarbonisation is no longer simply about adding renewable capacity, it is about delivering reliable, high-CUF clean power that can meet the needs of energy-intensive operations around the clock," she said.
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"At Serentica, we remain focused on making renewable energy a dependable foundation for India's next phase of industrial growth," Dewan said.
The agreement adds to Serentica's portfolio of renewable energy supply for commercial and industrial consumers. According to the statement, the company is developing large-scale projects that combine wind, solar and related power infrastructure to meet the energy needs of India's industrial sector.