Vedanta arm to source 105 MW hybrid renewable power for its aluminum operations

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Vedanta Ltd has announced its arm Bharat Aluminium Co. Ltd (BALCO) has entered into a power delivery agreement (PDA) with Serentica Renewables India to source 105 MW of hybrid renewable power for its aluminum operations in Chhattisgarh.

Serentica Renewables India (erstwhile Sterlite Power Technologies) is engaged in the business to supply renewable energy based on solar, wind, and battery storage solutions. It will form a special purpose vehicle (SPV) with BALCO to develop the hybrid RE project on a captive model and build-own-operate (BOO) basis to supply power for BALCO’s aluminum operations.

The project will be funded on a 70:30 debt-to-equity basis. BALCO will own 26% of the equity in the SPV at a total investment of up to INR 135 crore for hybrid renewable power. The remaining equity in SPV will be held by Serentica Renewables India.

“The term of the PDA will be for a period of 25 years from the date of commissioning of the project. The SPV is expected to start delivering the power within 24 months of the PDA signing,” stated Vedanta.

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