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Daimler India Signs PPA with Zelestra for 16.2 MW Renewable Energy

Daimler India Commercial Vehicles (DICV) has signed a power purchase agreement (PPA) with Zelestra India to procure 16.2 MW of renewable energy for its Oragadam factory near Chennai. Under this agreement, Zelestra will supply 29 GWh annually from its wind and solar assets in Tamil Nadu.

DICV manufactures BharatBenz trucks and buses, along with FUSO, Mercedes-Benz, and Freightliner brands at its Chennai facility. Zelestra, which has over 5 GW of clean energy projects in development across seven states, was previously awarded 140 MW at ?4.25 (~$0.0506)/kWh in SJVN’s renewable energy auction in October 2024.

Earlier, Daimler announced that it had achieved 100% renewable energy use at its Oragadam plant, supported by a 4,300 kW solar project with 15,000 panels, contributing 17% of its total clean energy consumption. The company aims to power all its production sites in India and Japan with renewable energy, with plans to extend this to U.S. sites and all global facilities by 2030. By 2039, Daimler targets carbon neutrality across all its production sites, with at least 55% of its energy needs met by renewables by 2030.

Currently, 70% of Daimler’s electricity and 12% of district heating worldwide come from renewable sources, with the company producing 35,747 MWh of clean energy in 2024.