Mumbai-based Privi Speciality Chemicals will procure power from a 16.60 MW solar project as a captive user by acquiring a 26% equity stake in Radiance MH Eleven, a special purpose vehicle (SPV) of Radiance Renewables, which is developing the project in Maharashtra.

The company entered into a power purchase agreement and a share subscription and shareholders’ agreement with the SPV by investing ₹17.75 million (~$193,143), and subscribing to 47,103 equity shares at ₹377 (~$4.10)/share, including a face value of ₹10 (~$0.11) and a premium of ₹367 (~$3.99)/share.

The investment represents 5.80% of the target company’s total paid-up equity capital and enables Privi to procure power from the project as a captive user.

Radiance MH Sunrise Eleven is engaged in the development, construction, operation, and maintenance of solar power projects in India. Privi Speciality Chemicals is a manufacturer, supplier, and exporter of aroma and fragrance chemicals and a major producer of bulk aroma chemicals in India. The company has been expanding its use of renewable energy as part of its sustainability strategy and decarbonization roadmap.

As of the financial year 2024–25, the company installed renewable energy capacity of 10.5 MW across its operations. Renewable electricity accounted for approximately 25.04% of total electricity consumption during the year.

The company aims to source 50% of its total energy requirement from renewable sources by 2032. Alongside renewable energy adoption, the company has implemented energy efficiency measures that resulted in savings of 17.7 GWh and helped reduce greenhouse gas emissions by 25,119 metric tons of carbon dioxide equivalent.

Commercial and industrial entities, large institutions, and residential complexes are increasingly turning to clean power solutions that offer power cheaper than conventional grid tariffs.

Earlier this year, the Ministry of Power proposed amendments to the Electricity Rules 2005 to simplify the regulatory framework for captive power generation.

Under the existing rules, a power project qualifies as a captive generating project only if two core conditions are met. Captive users must hold at least 26% ownership in the project and consume at least 51% of the electricity generated.