American solar technology company First Solar on Thursday said it has entered into a 15-year captive Power Purchase Agreement (PPA) with Cleantech Solar. Under the agreement, Cleantech Solar would provide clean electricity to First Solar’s 3.3 gigawatt vertically integrated solar manufacturing facility in Sriperumbudur.
First Solar’s manufacturing facility in Sriperumbudur would be inaugurated in presence of Tamil Nadu Chief Minister M. K. Stalin on January 11.
Cleantech Solar will construct 150 megawatts (MW) of photovoltaic (PV) solar and 16.8 MW of wind-generating assets in Tamil Nadu and supply about 7.3 gigawatt-hours (GWh) to First Solar’s facility, the companies said in a joint statement.
Meanwhile, Cleantech Solar has agreed to procure 150 MW of advanced, India-made Series 7-thin film solar panels from First Solar, utilizing the modules to power the solar PV component of the PPA. The modules are expected to be delivered in the first half of 2024.
The agreement is believed to be one of the largest intra-State PPAs in India. With this latest agreement, Cleantech Solar’s total portfolio size in Tamil Nadu now stands at nearly 500 MW across operations and construction stages, and include solar, wind and hybrid power projects.
When fully commissioned by the third quarter of 2024, the solar and wind generation assets are expected to provide up to 70% of the anticipated electricity needs of the First Solar’s manufacturing facility in Sriperumbudur They are expected to displace almost 7,000 kilotons of CO2 emissions over the duration of the PPA.
“Our new manufacturing facility in Tamil Nadu sets a high benchmark for responsible and sustainable vertically integrated solar manufacturing, not just in India, but globally,” said Sujoy Ghosh, vice president and managing director, First Solar India.
“By powering our operations with clean, renewably-generated electricity, we are working to further reduce our environmental footprint, which is already the lowest in the industry,” he said.
“This collaboration extends beyond powering First Solar’s flagship manufacturing facility in India; it involves leveraging their advanced, ultra-low carbon thin film solar panels to energise our solar assets,” Sachin Jain, chief executive officer, Cleantech Solar, said.
In 2021, First Solar said it would invest $684 million to build the manufacturing facility in Tamil Nadu. The solar plant located in an area of high baseline water stress, is believed to be the world’s first net-zero water withdrawal solar manufacturing facility. The factory is home to India’s first photovoltaic (PV) solar recycling plant.
