PepsiCo’s bottling partner, Varun Beverages, signed a power purchase agreement (PPA) for a 22.5 MW solar project integrated with a battery energy storage system (BESS) in Rajasthan with Vibgyor Energy.

The project will supply clean solar power backed by integrated storage to Varun Beverages’ manufacturing facilities across Kota, Alwar, Jaipur, Jodhpur, and Bhiwadi.

The agreement has been structured through Vibgyor Energy’s special purpose vehicle (SPV), Jager Renewables Two. To comply with group captive regulations, VBL will initially invest ₹26,000 (~$294) for 2,600 shares, representing a 26% equity stake in Jager Renewables Two, with further investments to be made in tranches. The transaction is expected to be completed on or before June 2, 2026.

The project is expected to generate over 39 million kWh annually. This will reduce Varun Beverages’ dependence on grid electricity, provide peak load management, and ensure long-term cost savings.

The acquisition will enable Varun Beverages to secure clean, cost-effective energy for captive consumption at its Rajasthan facilities. No additional governmental or regulatory approvals are required for this transaction.

In its stock exchange disclosure, Varun Beverages confirmed that the acquisition does not qualify as a related-party transaction and that the promoter or promoter group has no financial interest in the SPV apart from this proposed investment.

According to its annual report 2024, Varun Beverages’ renewable energy use rose 3% from the previous year to 16%. It has set a target of 30% renewables in its energy mix by 2030.

Mercom India hosts a multicity ‘C&I Clean Energy Meet’ series designed to provide commercial and industrial energy buyers with the knowledge and tools they need to adopt clean energy solutions and lower their power costs. The next Clean Energy Meet event will be held in Jaipur on September 19, 2025.

The event will host C&I business units with large power capacities, clean energy solutions providers, consultants, energy auditors, equipment and component manufacturers, lenders, investors, industry associates, facility and plant managers, C-level executives of C&I businesses, engineers, procurement managers, and other decision-makers.

Contact us if you plan to install solar and need guidance or vendor recommendations.