Team News Riveting
New Delhi, January 27
The Vedanta Group had tied up for long term renewable power supply to its facilities across India.
The Board of Directors of the Company has approved plans for the Group to source 91 MW Hybrid Renewable Power (50 MW for Aluminium Operations, 16 MW for Copper Operations and 25 MW for Oil and Gas Operations) and 600 MW Solar Power (for Aluminium Operations) (Renewable Energy) for its Aluminium Jharsuguda, Copper and Oil and Gas operations across India.
Accordingly, the Company will execute Power Delivery Agreements (“PDA”) through special purpose vehicles (SPVs), i.e., affiliates of Serentica Renewables India Private Limited (“SRIPL”) (erstwhile Sterlite Power Technologies Pvt. Ltd) – 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”.
Vedanta aims to achieve substantial consumption of Renewable Energy for smelting and associated operations, and meeting power requirements of capacity expansion at Vedanta Limited–Aluminium Jharsuguda, Copper and Oil & Gas Operations. Once this power supply comes online, it has the potential to prevent about 38 million tons of GHG emissions over PDA term from entering the atmosphere.
In line with prevailing market practices, these 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 per cent of equity in the respective SPV,” Vedanta Limited said in a regulatory filing.
