Yamaha Motor Co. plans to tap more green energy to drive production in India, the latest sign that renewable power could boost profit for industrial manufacturers.
The Japanese motorcycle maker wants solar power to supply a quarter of energy needs at its northern Indian factories near Delhi. Yamaha motors wants to double capacity to 8 megawatts by 2018 at a facility in Surajpur.
Solar power is much cheaper at 5.80 rupees a kilowatt-hour compared with the government’s tariff of 8.5 rupees a kilowatt-hour, the company gets about 12 percent of its current power needs from renewables for northern operations.
Falling solar-power prices have encouraged companies from manufacturers to miners to generate at least part of their energy needs from renewables. India, the world’s second-most-populous country, wants to install 60 gigawatts of wind and 100 gigawatts of solar by 2022 under a plan championed by Prime Minister Narendra Modi.