Shree Krishna Paper Mills to Source 8.5 MW Solar Power
⚡ Quick Read
- What happened: Shree Krishna Paper Mills is acquiring a 26.5% stake in Ratan Green Projects One to source power from an 8.5 MW solar project with a 1.3 MWh BESS in Pali, Rajasthan.
- Why it matters: This captive model highlights the growing trend of energy-intensive industries leveraging equity-based power procurement to hedge against rising grid tariffs.
- Watch: The investment of ₹31 million in two tranches, with the final payment due 30 days before the project’s commercial operation date.
Background and Context
Shree Krishna Paper Mills and Industries has announced a strategic move to secure its energy future by partnering with Ratan Green Projects One (RGPOPL). The company is set to procure electricity from an 8.5 MW captive solar power project located in the Pali district of Rajasthan. By acquiring a 26.5% equity stake in the project developer, Shree Krishna Paper Mills aims to transition its manufacturing operations toward sustainable energy, effectively lowering its reliance on conventional grid power.
Key Details
The project is not just a standard solar installation; it incorporates a 1.3 MWh battery energy storage system (BESS), ensuring improved reliability and load management for the paper mill. The total investment for this acquisition is capped at ₹31 million (approximately $332,000). The financial structure involves two distinct cash tranches: an initial investment of ₹9.3 million ($100,000) to be deployed within 30 days of the agreement execution, and a second tranche of ₹21.7 million ($233,000) scheduled for release 30 days prior to the expected commercial operation date (COD) of the solar facility.
What This Means for EPCs and Developers
For EPC contractors and renewable energy developers, this deal underscores the viability of the captive and group-captive power models in India. Energy-intensive industries, such as paper manufacturing, are increasingly prioritizing clean energy to optimize operational costs and meet ESG mandates. The integration of BESS into this 8.5 MW project signals a shift toward more sophisticated, dispatchable renewable energy solutions. Developers should note that manufacturing facilities are actively seeking partners who can provide end-to-end solutions, including equity participation, to ensure long-term, low-cost power stability.
What Happens Next
As the project moves toward its commercial operation date, stakeholders will monitor the execution of the second investment tranche. The success of this captive model serves as a blueprint for other industrial players in Rajasthan and across India. Within the broader India renewable energy sector, such projects are becoming essential for industrial decarbonization, as companies look beyond traditional rooftop solar to larger, storage-integrated open-access models to maintain competitive manufacturing costs in a volatile energy market.
