Solvay to use renewable solar power at Roha plant in India

More than half of the electricity needs of Solvay's production facility in Roha, Maharashtra, will be powered by a brand new solar generator starting next year, thanks to a new power purchase agreement (PPA) signed with India's largest solar generator It is estimated that 3,900 tons of carbon dioxide emissions can be avoided every year
.

The solar park, a few hundred kilometers inland in Katol, Maharashtra, is now well underway: its financing is fully secured by the off-taker investment and purchase agreement, and its construction has already begun
.
The Roha plant will start receiving its green electricity in early 2022
.

As part of Solvay's recently added environmental goals, the group is working to convert as many of its factories around the world as possible to renewable energy
.
To do this, Solvay's sustainable energy team is always looking for new ways to reduce the carbon footprint of its energy procurement
.

One of the ways to achieve this is by signing power purchase agreements with renewable electricity producers
.
Solvay contributes to the financing of clean energy projects through long-term commitments to purchase a fixed amount of electricity they produce
.

About 50 kilometers south of Mumbai, the Roha factory is part of the group's Novecare global business unit, which makes ingredients for home and personal care products
.
The plant's new power purchase agreement strengthens Solvay's stance on renewable energy in the country
.

“This is our flagship project that makes a real contribution to reducing our emissions, and since this is a very long-term power purchase agreement (over 15 years), it’s a win-win: it ensures the producer’s revenue, while We can buy electricity at an attractive price,
” said Mathilde Mathieu, Renewable Business Models and Contracts Manager at Solvay Sustainable Energy
.

A feature of the PPA signed with Fourth Partner Energy, India's largest solar producer, is an equity investment in the project by Consumer and Industrial Specialty Equipment
.
This is a small investment required by local regulations in order to support more direct renewable energy projects
.

It turns out that the Roha plant will save on its energy costs, in addition to avoiding thousands of tonnes per year, as power purchase agreements cover 60% of its electricity consumption and renewable electricity is now actually cheaper than conventional electricity purchased from the grid of carbon dioxide emissions
.

One caveat is that consumption must match production in real-time: a company can only commit to buying as much solar power as it can consume at any given moment
.
Solvay is one of the "lessees" of the solar plant, which have each signed an agreement to buy a portion of the electricity it produces, targeting 2.
45 megawatts of the facility's total of 38 megawatts
.
“We have to find the right balance so that we can maximize the amount of electricity we buy without buying more than we can consume
,” explained Mathilde Mathieu, “due to the variability of solar production and regulatory constraints.
, the calculation is quite complicated
.
"

“As business demand for clean sources of electricity continues to increase and the number of renewable energy projects is limited (in part because these projects are very complex from a financial and regulatory perspective), securing supply is a strategic priority, not so much It’s easy to achieve
,” says Anne-Charlotte Butrot, Sustainability Program Manager at Novecare
.

“We are involved in several energy transition projects across the plant – such as the EarthEra Renewable Energy Certificate in the US – and are constantly looking to do more
.
We knew there was demand at the Roha plant, so when Solvay’s sustainable energy team asked When we proposed this power purchase agreement, we quickly decided to pass it
," Butrot said
.