Hyundai Motor India Limited (HMIL) has announced the execution of two significant Power Purchase Agreements (PPAs) with FPEL TN Wind Farm Private Limited, a Special Purpose Vehicle (SPV) formed by Fourth Partner Energy Private Limited. These agreements were signed on November 20, 2024, to reinforce Hyundai’s commitment to sustainability by increasing its use of renewable energy.
Key Highlights of the Agreements
- Purpose of the Agreements
The agreements aim to establish a sustainable energy source for HMIL by leveraging renewable energy. Under these PPAs, a solar power plant with a capacity of 75 MW and a wind power plant with a capacity of 42.9 MW will be set up in Tamil Nadu, amounting to a total capacity of 118 MW. These initiatives are part of the Group Captive Model to ensure reliable energy supply. - Hyundai’s Stake in the SPV
Hyundai Motor India will subscribe to a minimum of 26% equity shares in the SPV by investing approximately ₹38.05 crore in multiple tranches. - Agreement Tenure and Terms
The agreement grants the power producer the right to establish and operate solar and wind power plants, while HMIL will source renewable energy for a period of 25 years from the start of commercial operations.
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Hyundai Motor India