⚡ Quick Read
- What happened: LG Electronics India signed 25-year PPAs for 20.8 MWp of solar capacity with Hinduja Renewables and Sunsure Energy to power its Pune and Greater Noida manufacturing plants.
- Why it matters: The deal highlights the growing trend of corporate PPA adoption by large-scale manufacturing firms to meet sustainability targets and reduce operational energy costs.
- Watch: The commencement of power supply scheduled for Q2 2026 and potential further equity investments by LG in Indian renewable SPVs.
Background and Context
LG Electronics (LGE) India has officially entered into long-term solar power purchase agreements (PPAs) to transition its manufacturing operations toward renewable energy. The company has secured a total of 20.8 MWp of solar capacity, distributed across its key manufacturing hubs in Pune and Greater Noida. This strategic move aligns with the broader corporate shift toward decarbonizing industrial supply chains in India, leveraging captive or group-captive renewable power models to achieve energy security and sustainability goals.
Key Details
The procurement is split between two major renewable energy players. Hinduja Renewables will provide 9.8 MWp of solar capacity for the Pune facility, sourced from its 27.7 MWp solar plant located in Nanded, Maharashtra. This arrangement is expected to supply 1.61 crore units of clean energy annually, fulfilling 40% of the Pune plant’s energy requirements and offsetting 0.31 million metric tonnes of CO2e over the project’s lifetime.
Simultaneously, Sunsure Energy will supply 11 MWp of capacity to the Greater Noida plant from its 82.5 MWp solar installation in Erach, Uttar Pradesh. This will generate approximately 1.6 crore units of electricity annually, covering 30% of the facility’s power needs and pushing the plant’s total renewable energy consumption to 50%. The project is projected to offset 0.30 million metric tonnes of CO2e over its lifespan. Both PPAs are structured for a 25-year duration, with power delivery slated to begin in the second quarter of 2026. Notably, these agreements represent LGE India’s inaugural strategic equity investment in Indian special purpose vehicles (SPVs) for renewable power generation.
What This Means for EPCs and Developers
For solar developers and EPC contractors, this deal underscores the robust demand for corporate PPAs in the manufacturing sector. As multinational corporations (MNCs) operating in India face increasing pressure to report lower Scope 2 emissions, the appetite for long-term, reliable renewable power supply is surging. Developers with ready-to-build or operational assets in states like Maharashtra and Uttar Pradesh are well-positioned to capture this market. Furthermore, the inclusion of equity investment in SPVs suggests that large corporate consumers are moving beyond simple procurement to becoming active stakeholders in renewable infrastructure, offering developers new avenues for project financing and partnership.
What Happens Next
The industry will monitor the execution phase leading up to the Q2 2026 commissioning date. As LGE India establishes its footprint in renewable SPV equity, other manufacturing giants may follow suit, potentially shifting the landscape of corporate power procurement in India. EPC contractors should prepare for increased demand for high-efficiency solar installations tailored to industrial manufacturing loads, particularly as state-level solar capacities—such as Uttar Pradesh’s recent growth to over 5 GW—continue to provide the necessary infrastructure backbone.
