Power Purchase Agreement (PPA) – Adopt Solar at Zero Capital Investment
Power Purchase Agreement (PPA) – Adopt Solar at Zero Capital Investmentadmin2020-11-03T10:59:01+00:00
Published Date: August 13, 2020 By Sirisha Gade Overview of the project: There is tremendous potential for the adoption of solar energy to power the requirements of various customer segments. Power Purchase Agreements (PPAs) enable commercial and industrial customers to generate solar power at a lower tariff and save on operational costs without any capital investment. In a PPA project, the client pays for the energy generated by the solar power plant. Solar power generated is at a much lower cost (up to 30%) than the grid tariff. As a result, the client benefits due to reduced operational costs at zero capital investment and no maintenance cost. System Size and capacity: In 2019, Freyr Energy installed the first set of PPA projects in Uttar Pradesh and Haryana.
A 450kW solar installation at Raj Kumar Goel Educational Foundation (RKGEF) in Haryana and
Solarization of two manufacturing facilities with 100kW solar system each at Bawal and Faridabad, by CMI Ltd., a leading manufacturer of speciality cables.
About our client(s): RKGEF was established in 1999 and is a Trust started by the Late Mr Raj Kumar Goel. The Trust established Raj Kumar Goel Institute of Technology in Ghaziabad, UP in September 2000. RKGIT is recognised by All India Council for Technical Education, Ministry of Human Resources and Development and is affiliated to Uttar Pradesh Technical University, Lucknow. CMI Ltd is a global brand and a household name in cables, wires and conductors. The Company has two manufacturing facilities one at Faridabad, Haryana and another plant at Baddi, Himachal Pradesh. The manufacturing facilities are spread over an area of 1,00,000 sq meters. Impact: The 450kW plant at RKGEF is expected to generate around 6.5 lakh units of electricity in a year at a 30% reduced tariff. The amount of CO2 emission saved through the project will be 622 tons per year which is equivalent to planting 7100 trees annually. The 100kW plants installed at Bawal and Faridabad for CMI Ltd is expected to generate around 1.5 lakh units of electricity each while saving around 138 tons of CO2 emissions annually.