Vedanta, SRIPL Collaborate for 105 MW Renewable Power for Chhattisgarh Smelter

Vedanta owned Bharat Aluminium Company Ltd. (BALCO) has said that it has signed an agreement with Serentica Renewables India Private Ltd (SRIPL) whereby the two firms will establish a special purpose vehicle (SPV) to source hybrid renewable energy for the aluminium operations in Chhattisgarh.

Vedanta revealed in a regulatory filing “BALCO has entered into a Power Delivery Agreement (PDA) to source 105 MW hybrid renewable power for its aluminium operations at Chhattisgarh, through Special Purpose Vehicle (SPV) i.e. affiliates of SRIPL.”

Vedanta held that the project will be funded on a 70:30 debt-to-equity basis. In the scheme of things, BALCO will have the ownership of 26 per cent in equity in the special purpose vehicle.

As per the metal giant, the hybrid power project will be built on a captive model through build own operate (BOO) basis.

The duration of the Power Delivery Agreement will be 25 years. As per Vendanta filing, the PDA will begin from the date of the commissioning of the renewable project.

Vedanta expects the SPV to start delivering the green energy within 24 months of the signing of the PDA that will enable the company to secure continuous supply of power through renewable energy sources for aluminium business.

Vedanta aims at achieving Net Zero target by 2050. Last year, the aluminium major confirmed plans to source 380 MW of green power on a long-term basis for its smelters. The quantum of green power is to help the smelter reduce greenhouse gas emissions by 15,00,000 tonnes CO2 equivalent every year.

Subsequently, Hindustan Zinc – another firm owned by Vedanta – revealed that it will source 200 MW of renewable energy from Gurugram based special purpose vehicle (SPV) Serentica Renewables through an infusion of Rs 350 crore into the RE firm.

Serentica Renewables itself is a group subsidiary set up to provide round-the-clock renewable energy enabling the transition of large-scale, energy-intensive industries  to clean energy within the group. Serentica aims to provide assured renewable energy through a combination of solar, wind, energy storage and balancing solutions.

In the medium-term, Serentica aims to install 5000 MW of carbon-free generation capacity coupled with different storage technologies.