Lloyds Metals and Energy has approved renewable energy investments under the group captive model, including equity stakes in solar and wind project companies. The investments are intended to secure long-term renewable power, improve energy security and support the company’s decarbonisation strategy.
Lloyds Metals and Energy Limited has approved a series of renewable energy investments under the group captive model, strengthening its strategy to secure long-term clean power for its mining and metal manufacturing operations. The company’s board has approved agreements to acquire a minimum 26% equity stake in three renewable energy project entities, enabling it to meet captive power consumption requirements under the group captive framework.
The approved investments cover both wind and solar power projects and are intended to increase the share of renewable electricity used in the company’s energy-intensive operations. The combination of solar and wind power is expected to provide a diversified renewable energy supply while reducing dependence on conventional grid power.
For the wind power segment, Lloyds Metals will invest in Amplus Green One Power Pvt. Ltd. and Amplus Energy One Pvt. Ltd., both associated with Amplus Energy Solutions. The company will also enter into long-term wind power purchase agreements with these entities to secure renewable electricity for captive consumption.
For the solar power segment, the board has approved an investment in Amplus Ceres Solar Pvt. Ltd., along with the execution of a long-term solar power purchase agreement for the supply of renewable electricity to the company’s operations.
The investments are structured to comply with the Electricity Rules governing group captive power projects, which require captive consumers to maintain a minimum equity stake in the generating entities. Lloyds Metals will also retain rights to preserve its minimum shareholding in future equity issuances and certain governance rights related to captive status and project operations.
According to the approved investment plan, the company will invest up to Rs 480.2 million across the three project companies. The renewable power procurement will primarily support its operations in Maharashtra, where the company is engaged in iron ore mining, sponge iron production and power generation.
The move builds on Lloyds Metals’ ongoing renewable energy transition and reflects the increasing adoption of group captive solar and wind projects by energy-intensive industries seeking lower electricity costs, improved energy security and progress towards sustainability and decarbonisation goals.