Cleantech Solar has entered into a captive power purchase agreement (PPA) with First Solar for a period of 15 years. As per the contract, First Solar will receive power from Cleantech Solar’s 150 MW and 16.8 MW of solar and wind assets in Tamil Nadu, India. This renewable power will be used to power First Solar’s recently established 3.3 GW vertically integrated solar manufacturing facility, situated in Tamil Nadu.
The solar and wind projects are expected to be fully operational by the third quarter of 2024, and once operational, they are expected to cater to approximately 70 per cent of the module manufacturing plant’s expected power requirements. This will help in mitigation of nearly 7,000 kilo tonnes of emissions throughout the term of the PPA.
Also, Cleantech Solar is going to purchase 150 MW of series 7 thin-film solar panels manufactured in India by First Solar. These modules are anticipated to be delivered in the first six months of 2024 and will be utilised to generate power for the solar segment of the PPA.
In September 2023, CleanTech Solar announced the commercial operation of its maiden virtual power purchase agreement. In July 2023, Cleantech Solar announced signing of long-term power purchase agreements with leading commercial and industrial customers in Tamil Nadu to develop 60 MWp of open access solar photovoltaic projects. These projects are being built in Tirunelveli district.
REGlobal’s Views: This is First Solar’ first module manufacturing facility in India, although the company has been present in the Indian market for years. Apart from procuring green energy for its operations, this facility is also reportedly a net zero water withdrawal solar manufacturing facility and will rely on tertiary-treated reverse osmosis water from the city’s sewage treatment plant. Further, the factory also has a solar PV recycling plant in line with its sustainability practices. There has been a lot of discussion globally around the environmental impacts of manufacturing as well as disposal of solar cells and more such environmentally-conscious facilities can be expected in the future provided governments adopt stringent norms.
