Ambuja Cements Limited has committed to invest Rs 60 billion for 1,000 MW renewable energy projects. The company intends to establish a varied range of solar and wind energy projects strategically located throughout Gujarat and Rajasthan. It comprises a 600 MW solar energy project and a 150 MW wind energy project in Gujarat, along with a 250 MW solar power project in Rajasthan. This target will be accomplished in phases to achieve 284 MW by the fiscal year (FY) 2024, 640 MW expected to be in place by FY 2024, and 1,090 MW by FY 26. The company has currently solar and wind power capacity of 84 MW.
Due to the more economical generation cost of green energy, the power expense is expected to decrease from Rs 6.46 per kWh to Rs 5.16 per kWh. A 20 per cent decrease, amounting to Rs 1.30 per kWh, results in a reduction of Rs 90 per metric ton of cement. With this cost reduction, Ambuja seeks to elevate its green energy proportion relative to its competitors, aiming to achieve 60 per cent of the planned capacity of 140 metric tons per annum by FY 2028, a substantial increase from the current 19 per cent.
