Century Enka Signs PPA for 9.9 MW Wind-Solar Hybrid Plant

PUNE — Century Enka Limited has entered into a Power Purchase Agreement (PPA) with ABREL Century Energy Limited to establish a 9.9 MW wind-solar hybrid power plant. The initiative is designed to provide a dedicated supply of renewable energy to the company’s manufacturing facility in Bhosari, Pune, under the captive consumption mechanism.

The agreement, disclosed by the company on June 20, 2026, involves the development of a hybrid energy infrastructure aimed at optimizing power procurement costs and reducing the carbon footprint of its industrial operations.

Strategic Shift to Renewable Energy

The project is being executed through ABREL Century Energy Limited, a Special Purpose Vehicle (SPV) established to oversee the power plant's operations. By opting for a wind-solar hybrid model, Century Enka aims to leverage the complementary nature of wind and solar power to ensure more consistent energy generation compared to standalone renewable sources.

In compliance with the Electricity Act, 2003, and the Electricity Rules, 2005, Century Enka is required to maintain a minimum of 26% equity share capital in the power-producing entity to qualify as a "captive user." This classification allows the company to source power exclusively from the project for its internal consumption, a strategy increasingly adopted by Indian manufacturing firms to hedge against grid volatility and rising energy tariffs.

Project Timeline and Operational Details

According to regulatory filings, the project is scheduled for commissioning by June 30, 2027. While an initial internal document inadvertently cited a 2026 date, the company later clarified that the official project timeline is set for mid-2027. A three-month grace period has been incorporated into the schedule to account for potential logistical or technical delays.

The collaboration represents an arm’s length transaction between the two entities. The move aligns with Century Enka's broader strategy to enhance operational efficiency by integrating sustainable energy solutions directly into its supply chain.

Official Sources

• National Stock Exchange (NSE) / Century Enka Regulatory Filing – Official intimation of the Power Purchase Agreement under Regulation 30.

• Securities and Exchange Board of India (SEBI) – Regulatory framework for listing obligations and disclosure requirements.

Why It Matters

For Century Enka, this 9.9 MW wind-solar hybrid plant is more than just an infrastructure project; it is a critical component of its cost-management strategy. By securing long-term renewable power through a captive model, the company mitigates risks associated with conventional power tariff fluctuations. For the broader industry, it highlights the growing trend of textile and manufacturing companies in Maharashtra adopting localized renewable energy solutions to meet ESG (Environmental, Social, and Governance) goals while maintaining competitive production costs.

Key Facts at a Glance

• Project Capacity: 9.9 MW (Wind-Solar Hybrid).

• Facility Location: Bhosari, Pune, Maharashtra.

• Commissioning Date: Scheduled for June 30, 2027.

• Captive Mechanism: Century Enka holds a 26% equity stake in the project to comply with Electricity Rules, 2005.

FAQ

1. What is a "captive consumption mechanism" in this context?

Under the Electricity Rules, 2005, a captive user is an entity that consumes at least 51% of the electricity generated by a power plant for its own use, provided the entity owns at least 26% of the power producer's equity capital.

2. Why did Century Enka choose a hybrid power plant?

Wind-solar hybrid plants combine two different energy sources that often peak at different times, leading to a more reliable and stable power supply compared to using only solar or only wind.

3. Will this project immediately lower energy costs?

The primary goal of the captive power model is to provide long-term predictability in energy costs by reducing reliance on grid power and stabilizing the power procurement price over the life of the project.

Source: NSE India - Century Enka Filing