Hindustan Zinc Limited will join scores of Indian companies ready to set up solar power projects to meet their captive needs.
The world’s second largest zinc producer – Hindustan Zinc Limited, part of the Vedanta Group – will set up 115 megawatts of solar power capacity for captive consumption.
According to company officials, the capacity shall be set up in two phases – 15 megawatts and 100 megawatts. In the first phase, 10 megawatts capacity shall be set up near a smelter facility while a 5 megawatts project will be set up close to a zinc mine.
The 100 megawatts capacity shall also be used for company’s own power needs but the officials reportedly did not disclose the location of the project.
The company reported that the total investment needed for the 115 megawatts capacity is around Rs 630 crore ($93 million) which puts the per megawatt cost at just under Rs 5.5 crore ($810,000). This capital cost matches the one assumed by the Central Electricity Regulatory Commission to determine the solar power feed-in in tariff for the current financial year.
These projects planned by Hindustan Zinc will perhaps be among the cheapest large-scale solar power projects in India.
By setting up captive solar power projects the company shall fix its power costs for the entire project age, around 20-25 years thus making significant financial savings. Additionally, the projects shall also help the company meet its solar power purchase obligation.