According to a regulatory filing, the board of Vedanta has approved plans to source 91 MW Hybrid Renewable Power. Of this, 50 MW will be for aluminium operations, 16 MW for copper operations and 25 MW for Oil & Gas Operations) and 600 MW solar power (for aluminium Operations) renewable energy for its Aluminium Jharsuguda, copper and oil & gas operations across India.
Accordingly, the Company will execute Power Delivery Agreements (PDA) through special purpose vehicles (SPVs) affiliated with Serentica Renewables India Private Limited (SRIPL), a company engaged in the business to supply renewable energy based on solar, wind and battery storage solutions.
Aligned with Vedanta’s ESG vision of “Transforming for Good”, the move marks the beginning in the series of actions by the Company to deliver on its goal of becoming “Net Zero Carbon by 2050 or sooner” and “using 2.5 GW of Round the Clock (RTC) Renewable Energy for its operations by 2030”.
The projects will be built on Captive model and Build Own Operate (BOO) basis. The term of the power delivery agreement will be for a period of 25 years from the Date of Commissioning (COD) of the project. The SPVs are expected to start delivering the power within 24 months of the PDA signing.
This will be helpful in securing continuous supply of power through Renewable Energy source and insulate our business from commodity market volatility. The project will be funded on 70:30 debt to Equity basis; Vedanta Ltd and its subsidiaries will own 26% of equity in the respective SPVs.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
