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Bengaluru: Amazon will be partnering in three new wind energy projects in India, the e-tailer announced on Thursday.
The e-commerce giant has signed up to partner with JSW Energy in Dharapuram, Tamil Nadu, for a 180 megawatt (MW) project. It has also tied up with CleanMax in Koppal, Karnataka for a 100 MW wind farm. Finally, it also joining hands with BluPine in Solapur, Maharashtra for a 99 MW project.
Without revealing its investment into these projects, the company highlighted the total 379 MW clean energy they will generate.
These investments will give Amazon a renewable energy portfolio in India of 53 solar and wind projects. This includes nine utility-scale solar and wind farms, and onsite solar arrays on 44 local buildings that host Amazon operations.
These projects cumulatively provide over 4 million MW hours (MWh) of carbon-free energy. According to Amazon, this is equivalent to the energy generated to power over 1.3 million homes annually. As per an informed source, the average number per home is about 800 to 1000 MW, depending on the area and consumption pattern.
The cost of setting up 1 MW of renewable energy is generally between Rs 4-6 crore, the source added, with variations from project to project.
On the driving factor, the source said, "Amazon is investing into real energy because it is cheaper, along with limiting carbon emissions.”
However, the source clarified, “Amazon is not setting up any solar (or wind) plant, nor does it have any such targets. This energy generation is being done only through partnerships based on our requirements. If our requirements increase, so will the partnerships”.
The partnerships are being done as Power Purchase Agreements (PPAs), wherein a company buys electricity from a renewable energy project. A small segment is also being done through Virtual Power Purchasing Agreements (VPPAs), said the source, which is a financial contract where the company can offset its carbon footprint without physically changing their power source.
Amazon is reportedly amongst the top corporate purchasers of renewable energy in India.