Banganga Paper Mills to Procure 2.5 MW Solar Power from Livint Green Technologies
Banganga Paper Mills Ltd. has signed a Power Purchase Agreement (PPA) with Livint Green Technologies Ltd. to procure solar power from a 2.5 MW captive solar plant in Maharashtra, ensuring cost-effective and sustainable energy for its Nashik manufacturing unit.
February 18, 2025. By Mrinmoy Dey
As per the agreement, Livint Green Technologies will develop, own, and operate a 2.5 MW DC ground-mounted solar power plant at Karjat Village, in Ahmednagar district of Maharashtra. This solar facility will supply clean energy to Banganga Paper Mills' manufacturing unit in Nashik, ensuring a reliable and cost-effective renewable energy source.
To comply with captive power generation regulations, Banganga Paper Mills will hold a 26 percent equity stake in the power-producing entity, while the remaining 74 percent will be retained by Livint Green Technologies. The project will be developed under a Build-Own-Operate (BOO) model, ensuring long-term sustainability and operational efficiency.
Additionally, under a Wheeling and Banking Agreement, any surplus electricity generated from the solar power plant will be banked with the state’s power distribution company for later use. “This strategic move will not only provide energy security but also enable Banganga Paper Mills to leverage carbon credits, reinforcing its environmental responsibility and commitment to green energy solutions,” the company shared in a statement.
It further added that the PPA has a minimum lock-in period of 15 years, with provisions for extension upon mutual agreement, demonstrating a long-term commitment to renewable energy and sustainable business practices.
By shifting to solar energy, the company will benefit from lower per-unit costs compared to current grid tariffs. With the present energy cost at INR 10.85 per unit, this initiative will lead to direct savings of approximately INR 2.30 - 2.50 per unit, as power is generated and distributed via the open grid for internal consumption.
Additionally, the company is expected to receive a tentative government subsidy of around INR 1.50 per unit on captive consumption, further enhancing cost efficiency. Effective April 1, 2025, the company will begin realising substantial energy cost savings through this initiative.
By transitioning to solar energy, Banganga Paper Mills will reduce its reliance on fossil-fuel-based grid power, significantly cutting carbon emissions and aligning with global sustainability goals. This move reinforces its commitment to eco-friendly manufacturing while ensuring cost-efficient energy management. By integrating renewable energy, the company sets a benchmark for the paper manufacturing sector, demonstrating leadership in sustainable business practices.
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