Mahindra Group has announced that it will develop a 150-MW hybrid RE (solar + wind) project at a total project cost of about ₹1,200 crore. The project will be developed by Mahindra Susten, part of Mahindra Group, with marquee global investor Ontario Teachers’ Pension Plan Board as a strategic partner.

The installation will include 101-MW wind capacity and 52-MW solar capacity and is expected to generate 460 million kWh of energy leading to expected abatement of 420,000 tonnes of CO2 emissions.

The project also marks Mahindra Susten’s foray into the ‘hybrid RE’ segment and will be one of the largest co-located solar + wind hybrid projects in Maharashtra to deliver clean energy to Commercial and Industrial (C&I) customers.

The project will be commissioned within the next two years and will integrate more than 80 per cent locally-manufactured components.

Stake acquisition

In this regard, Mahindra is acquiring 26 per cent stake in one or more tranches in Gelos Solren Private Ltd, a wholly-owned subsidiary of Mahindra Susten Private Ltd, which is a subsidiary of Mahindra Holdings Ltd, which, in turn, is a wholly-owned subsidiary of M&M Ltd. Gelos plans to generate and distribute renewable energy in accordance with the group captive power procurement model. The acquisition of the stake is for ₹40.08 crore

Anish Shah, CEO and MD, Mahindra Group, said, “Energy transition is a key global and national priority to address climate change. The project marks a key milestone in Mahindra Group’s continued investments in building and scaling its green portfolio.”

Deepak Thakur, CEO and MD, Mahindra Susten, added, “This project will showcase the immense potential of hybrid RE solutions in helping companies transition towards green operations.”

The Auto & Farm businesses of M&M has contracted capacity of 41.20 MW of wind and 25.90 MW of solar within this project, which will annually generate 197 million kWh of energy and is expected to abate about 184,000 tonnes of CO2 emissions.

The project is expected to increase the RE share of M&M from 34 per cent in FY23 to 60 per cent in FY26.

Veejay Nakra, President, Automotive Division, M&M, said, “As the auto business invests to increase capacity and shifts towards a greener portfolio with the impending launch of multiple EVs, we want to ensure our operational emissions also come down. This project is a clear win for both economic and environmental outcomes, and a step further in integrating sustainability closely with business strategy.”