UltraTech Cement has announced its acquisition of a 26 per cent equity stake in Solaris Horizon Energy, a renewable energy firm, through an Energy Supply Agreement (ESA) and a Share Subscription and Shareholders Agreement (SSSHA). The company plans to invest approximately ₹27.75 crore in this venture. These agreements mark a strategic move for UltraTech Cement as it seeks to enhance its renewable energy portfolio.

Captive Solar Power for Mungeli Operations

The primary objective of this investment is to enable UltraTech Cement to secure solar power for its manufacturing plants located in Mungeli district, Chhattisgarh. By establishing a captive solar power arrangement, the company aims to meet its increasing green energy demands while managing electricity costs effectively. This initiative will contribute significantly to UltraTech’s efforts to minimise reliance on traditional power sources.

In addition, the captive power setup is expected to assist UltraTech in adhering to the regulatory requirements related to captive power consumption in accordance with India’s electricity regulations. Given the energy-intensive nature of cement production, advancing in renewable energy procurement aligns with the company’s long-term decarbonisation objectives.

The special purpose vehicle (SPV), Solaris Horizon Energy, is in the process of developing a 65 MW solar power project in Chhattisgarh. UltraTech’s investment enabling access to the clean electricity generated by this project will facilitate a more sustainable operational model for its cement manufacturing activities.

Broader Renewable Energy Strategy

This acquisition of a stake in Solaris Horizon Energy is part of UltraTech Cement’s overarching strategy to increase its reliance on renewable and clean energy sources. In the fiscal year 2026, the company commissioned an additional 371 MW of renewable energy capacity, raising its total installed capacity to 1.39 GW.

Furthermore, during the same period, UltraTech added 63 MW of waste-heat recovery capacity, bringing its total clean power capacity to 1.81 GW. These enhancements reflect the company’s ongoing commitment to diversifying its energy sources and improving sustainability.

UltraTech’s expanding renewable energy portfolio has made a substantial impact on its operations, with green energy accounting for approximately 41 per cent of its total power requirements in FY2026. This figure rose to about 43 per cent in the fourth quarter of FY2026, demonstrating the company’s active transition towards renewable electricity.

Long-term Commitment to Clean Energy

UltraTech Cement’s collaborative investment in Solaris Horizon Energy underscores a notable trend among major industrial players seeking stable access to renewable electricity. Such strategies promote long-term availability of clean power, contributing to better visibility of energy costs while supporting sustainability goals.

The upcoming 65 MW solar project in Chhattisgarh is expected to enhance UltraTech’s renewable energy network further, reinforcing its commitment to increasing the proportion of clean power in its manufacturing operations. This investment is anticipated to facilitate a greater alignment with the company’s sustainability agenda and energy efficiency targets.

Overall, UltraTech Cement’s initiatives in renewable energy underscore the firm’s proactive approach towards adapting its operations to meet environmental challenges and regulatory mandates within the industry. This strategic investment is a step towards achieving a more sustainable energy model in the cement manufacturing sector.

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