Clean Max Enviro Energy Solutions Limited has issued an addendum to its Q3 FY2026 shareholders' letter dated March 18, 2026, addressing investor queries regarding potential regulatory changes in Maharashtra and other states. The addendum specifically analyses the impact of proposed restrictions on solar energy banking norms and the introduction of Time-of-Day (ToD) tariffs. The company conducted a comprehensive analysis across its operational portfolio of over 570 customers and 1,200+ PPAs, concluding that the worst-case EBITDA impact remains approximately 1.5% under a conservative retrospective stress test scenario.

Maharashtra Regulatory Changes

Maharashtra's Multi Year Tariff order dated March 25, 2026, proposes two key changes. First, banking of renewable energy for Open Access consumers is now restricted to 9am-5pm solar hours, whereas previously power generated during solar hours could be used during the same calendar month during both solar hours and late night slots (12am-6am). Second, the order introduces ToD tariffs with varying charges and rebates across different time slots. Solar hours (09:00-17:00) carry a rebate of -15% to -25% of energy charge, normal hours (00:00-06:00 and 06:00-09:00) have 0% charge, and peak hours (17:00-24:00) carry a +25% charge.

Portfolio Impact Analysis

The company analysed three dimensions of potential impact: capacity impact due to banking restrictions, Minimum Savings Guarantee (MSG) impact with ToD tariff implementation, and a retrospective stress test assuming immediate adoption across all key states. The analysis covered the full operational portfolio of 2,986 MW comprising 2,356 MWp solar and 630 MW wind capacity, with run-rate revenue of INR 2,162 crore as of March 1, 2026.

Diversified Portfolio Segments

Three segments representing 48% of portfolio run-rate revenue (INR 1,031 crore) are unaffected by the proposed regulations. Onsite Solar (384 MWp, 12% of run-rate revenue) supplies power directly at customer premises without using the transmission network. CTU-connected EAPA deals (525 MWp, 12% of run-rate revenue) operate under the Central Transmission Utility framework governed by CERC regulations. STU Third Party Open Access (534 MW, 24% of run-rate revenue) includes contracts in Gujarat contributing 67% of run-rate revenue (INR 344 crore annually), which are primarily wind-solar hybrid with limited impact due to generation being split across time of day bands. Contracts in Karnataka contribute approximately 30% of run-rate revenue or INR 156 crore annually, benefiting from cross-subsidy surcharge waivers attached exclusively to the plant.

STU Group Captive Portfolio

The STU Group Captive portfolio, representing 52% of run-rate revenue, shows varying impacts across different categories. Solar-only capacity (467 MWp) faces a 12.1% capacity impact and 5.1% EBITDA impact, as surplus generation beyond solar-hour consumption lapses with no wind to offset it. Wind + Solar hybrid states (1,076 MW) show lower impact with 5.6% capacity impact and 1.9% EBITDA impact, demonstrating the advantage of hybrid solutions.

Hybrid Advantage and Competitive Positioning

Wind-solar hybrid plants ensure generation is spread across different timeslots during the day, reducing dependency on banking and mitigating the effects of stringent banking regulations. In Gujarat, approximately 65-70% of renewable energy power consumption is from wind generation, meaning solar is already primarily consumed within solar hours, resulting in low capacity impact. The company's hybrid offerings provide a competitive advantage in markets where wind potential exists, with limited developers able to provide credible hybrid solutions at scale.

For instance, under an 8-hour banking restriction scenario, a solar-only developer can deliver only INR 4 crore savings at 33% offset for a customer with 62 million units consumption, compared to INR 16 crore savings at 66% offset under the previous 20-hour banking regime—a 75% reduction in customer savings. Clean Max's hybrid solution (9.9 MW wind + 13.2 MWp solar) restores offset to 72% and savings to INR 15 crore, nearly matching the original solar-only outcome despite tighter banking rules.

Clean Max Enviro Energy Solutions Limited has announced a significant partnership with Shell to supply hybrid renewable power to Shell's LNG terminal and technology centre in India. The collaboration involves developing renewable energy projects with a combined installed capacity of approximately 30 MW across Gujarat and Karnataka.

Project Details

The partnership encompasses two major hybrid renewable energy projects designed to serve Shell's critical operations in India. These projects combine wind and solar technologies to ensure reliable power supply for energy-intensive facilities.

Gujarat Operations

In Gujarat, CleanMax is developing a 16.83 MW hybrid renewable energy plant comprising 6.93 MWp of solar and 9.90 MW of wind capacity. This project will supply renewable power to Shell's LNG terminal at Hazira, Surat, under the group-captive model. The hybrid configuration is specifically designed to support the energy-intensive operations of the LNG terminal while enhancing supply stability and operational resilience.

Karnataka Facilities

The Karnataka project involves a 13.20 MW hybrid renewable energy plant, consisting of 9.90 MWp of solar capacity in Jagalur and 3.30 MW of wind capacity in Honawad. This installation will power Shell's Technology Centre in Bengaluru, which serves as Shell plc's third global technology centre featuring advanced engineering, digital, and pilot testing facilities for current and future energy systems.

Strategic Partnership Framework

Under the group-captive framework, both companies will co-invest in developing these renewable energy assets, aligning with Shell's continued efforts to advance lower-carbon operations in India. The projects are expected to generate approximately 66,832 MWh of renewable energy annually based on the Power Purchase Agreement.

Kuldeep Jain, Managing Director of Clean Max Enviro Energy Solutions Limited, emphasized the significance of the partnership in supporting Shell's net zero ambitions while enabling critical operations to adopt cleaner energy. He noted that commercial and industrial consumers account for nearly half of India's electricity demand, making corporates key to the country's energy transition.

Mansi Madan Tripathy, Chairperson of Shell Group of Companies India, highlighted how hybrid renewable solutions offer a practical pathway to balance reliability with decarbonization needs across complex assets. The collaboration reflects Shell's approach across key facilities in Gujarat and Karnataka, supporting ongoing efforts to decarbonize operations and serve as a trusted partner in India's energy transition roadmap.