Indian tyre maker, Apollo Tyres has ensured green power for its largest manufacturing facility in Chennai, in bid to increase the share of renewable energy to more than 30% of the total for this manufacturing facility.
Apollo Tyres has invested INR 93 million in CSE Deccan Solar, a subsidiary of Cleantech Solar for a 27.2% equity, to get a guaranteed supply of 40 million units of electricity/year for its Chennai facility. Because solar power is only produced for a few hours each day and there is no storage facility, the company chose to offtake an optimal quantity, which is roughly 20% of the total requirements in Chennai.
The investment to secure solar power for our Chennai facility, according to Sunam Sarkar, President & Chief Business Officer, Apollo Tyres Ltd, is one of several initiatives the company is undertaking towards a sustainable future and will help the company become self-sufficient for its power requirements for critical equipment.
The company hopes to save money through this deal with Cleantech Solar, as solar power rates in India are set for the next two decades and are currently lower than the State Electricity Board’s per unit rate,. Solar power will most likely be delivered to Apollo Tyres’ Chennai facility in July of this year. In Chennai, Apollo Tyres has the capacity to produce 900 metric tonnes/day of tyres, including passenger vehicle tyres as well as light, medium, and heavy commercial vehicle tyres.