The Power Cement Limited has signed an agreement to set up a 7MW solar power plant at its existing site for the procurement of electricity, a bourse filing said on Friday.
“The company has signed an agreement with Burj Solar Energy (Private) Limited on January 6, 2022 for procurement of electricity on a fixed tariff (around 40 per cent lower than the existing grid tariff) for the next twenty years,” the filing stated.
According to the agreement, Burj Solar will invest by setting up a dedicated 7MW solar power plant at the existing site of the Power Cement, and the plant is expected to be operational within the next six to eight months.
In order to curtail the impact of swelling electricity expense, which is a material component of cement manufacturing cost, the company decided to explore environment-friendly renewable energy solutions without incurring any major capital expenditures, it added.
The rapid growth of solar and wind power offering exponential cost reduction has compelled the industries and businesses to modify their energy consumption mix, as more and more industrial units are opting for distributed power generation to ensure reliability and cost savings.