Mumbai, 11 September 2023: Cleantech Solar, a leading provider of renewable energy solutions to corporations in India and Southeast Asia, is proud to announce the commercial operation of its maiden Virtual Power Purchase Agreement (VPPA). Power from this operating solar power plant in India, after being dispossessed of its renewable attributes, is being sold to the energy exchange. The project has been registered under the International Renewable Energy Certificates (I-REC) mechanism, and the renewable attributes (in this case I-RECs) from this project are being purchased by a leading FMCG company under a virtual PPA. This is amongst the first operational VPPA plants in India.
The lifetime green energy generation from this project is approximately 187 GWh, which is akin to offsetting over 171 kilotonnes of carbon emissions. This agreement enables the client to support renewable energy development whilst reducing carbon emissions without directly integrating the solar project into their physical energy infrastructure. Functioning under the principle of ‘additionality’, Virtual PPAs ensure the claimed environmental benefits or the green attributes by the procurer are credible as this energy would not have been generated in the absence of the said agreement. They work as a simple bilateral agreement between the IPP and the off-taker. Virtual PPAs function as a crucial tool for for corporates to adopt renewables in their energy mix. In addition, they are an increasingly important tool for these customers to mitigate Scope 3 emissions and make their value chains more environment friendly.
Mr. Sachin Jain, CEO of Cleantech Solar, said: “Virtual PPAs have the potential to significantly help corporates achieve 100% green power, thereby contributing towards their sustainability, RE100 and net zero goals. We are proud to execute one of the first operating VPPAs in India and look forward to helping more industries go 100% green, as well as supporting India’s energy transition.”
About Cleantech Solar (www.cleantechsolar.com):
Cleantech Solar is a pan-Asia supplier of renewable energy to corporates, combining the capabilities of a global player with responsiveness and agility.
Headquartered in Singapore, Cleantech Solar has numerous solar and wind projects across India and Southeast Asia, covering approximately 1GWp of assets in operations, construction and development stages. This includes installations in India, Singapore, Cambodia, Indonesia, Malaysia, Thailand and Vietnam.
The company is backed by long-term strategic shareholders – Keppel Corporation, Keppel Asia Infrastructure Fund and Shell Singapore Pte. Ltd.