JK Cement Expands Green Portfolio with 7 MW Solar Power PPA
⚡ Quick Read
- What happened: JK Cement has acquired a 9.77% stake in Mehrauni Electro Power, an SPV of Onward Solar, to procure 7 MW of solar power for its Prayagraj facility.
- Why it matters: This group captive arrangement highlights the growing trend of industrial players investing in equity stakes to secure long-term, cost-effective green energy.
- Watch: JK Cement’s progress toward its 75% green power procurement target by FY 2030 and its planned 166 MW capacity addition.
Background and Context
JK Cement has taken a strategic step in its decarbonization journey by securing a 7 MW solar power supply from a 40 MW project located in Prayagraj, Uttar Pradesh. The power will be sourced through a group captive arrangement from Mehrauni Electro Power, a special-purpose vehicle (SPV) established by Onward Solar Power. This move aligns with the company’s broader objective to transition its manufacturing operations toward sustainable energy sources.
Key Details
To facilitate this procurement, JK Cement invested ₹21 million (~$252,009) to acquire a 9.77% equity stake in Mehrauni Electro Power. The acquisition involved 2.1 million equity shares at a face value of ₹10 each. This project is intended to power the company’s manufacturing facility in Prayagraj. Currently, JK Cement has approximately 274 MW of power purchase agreements (PPAs) assigned for wind and solar projects. In FY 2025, the company successfully increased its green power procurement to 51%, a significant jump from 19% in FY 2020. The company’s green energy mix currently includes 101.84 MW from wind and solar assets, with the Muddapur plant in Karnataka achieving over 99% green power utilization in the same period.
What This Means for EPCs and Developers
For solar developers and EPC contractors, this transaction underscores the robust demand for open-access solar solutions in the C&I (Commercial and Industrial) segment. As large corporations like JK Cement aim to hit ambitious sustainability targets—such as the company’s goal of 75% green power by FY 2030—the appetite for equity-backed captive models is increasing. Developers who can offer reliable SPV structures and operational excellence are increasingly finding favor with industrial giants looking to hedge against grid volatility and rising power costs.
What Happens Next
JK Cement has signaled further expansion, with plans to add 166 MW of green power capacity in the coming years. The company is actively diversifying its portfolio, evidenced by its recent investment in O2 Renewable Energy V to secure a 12.21% stake in a 22 MW wind project in Karnataka. As India’s renewable energy sector continues to mature, with cumulative installed solar open access capacity exceeding 30 GW by the end of 2025, industrial players are expected to play a pivotal role in driving the next wave of capacity additions through direct investment and long-term captive procurement strategies.
