Indian telco Vodafone Idea has signed a Power Purchase Agreement (PPA) with Aditya Birla Renewables SPV 3 to procure power from a planned 4MW captive solar project in Maharashtra, India.

In addition, the company also acquired a 26 percent stake in the SPV for INR 15.6 million ($178,000) in one or more tranches over the next six months.

Aditya Birla Renewables SPV 3 is a wholly owned subsidiary of Aditya Birla Renewables. The SPV was formed in November of last year with the view to commission and operate wind and solar projects across India. According to its website, the renewable developer has 3.6GW of capacity in operation or secured, with a goal to reach 4.5GW by the end of 2026.

The all-cash acquisition will allow Vodafone Idea to comply with captive power plant requirements under the Indian Electricity Act of 2003 and the Indian Electricity Rules of 2005, while also facilitating renewable energy sourcing without the need for government approvals.

The telco has increasingly focused on renewable procurement over recent years. In its latest sustainability report, it reported that it had sourced more than 40 million kWh from renewable energy during the 2024 financial year. The report went on to reveal that the telco has more than 1,000 co-owned sites that operate via solar solutions, with a further 400 solar solutions deployed at co-owned tower sites.

Vodafone Idea was formed back in 2018 following a merger between Vodafone India and Idea Cellular. Over recent years, it has dealt with significant financial struggles and was bailed out by the Indian government three years ago.

Despite the bailout, reports surfaced recently that the telco could again be at the precipice. Last month, DCD reported that the Indian government was considering a range of options to support the telco, which is still struggling to pay its dues to vendor partners.

Vi's financial challenges have heavily impacted the company's 5G rollout, which only launched in March, two-and-a-half years behind schedule.