The Vedanta Group said it would supply its various activities nationwide with 600 MW of solar energy and 91 MW of hybrid renewable energy through open access under the captive mode. The corporation, in a BSE filing, revealed that.
The projects will be established through Serentica Renewables India’s unique purpose entities (SPVs). Vedanta would carry out the power delivery agreements (PDAs) with Serentica. The Group’s aluminum activities in Jharsuguda, copper operations nationwide, and oil and gas operations will benefit from the solar capacity. Also, the hybrid renewable project’s power output would be split into 25 MW for oil and gas activities, 50 MW for aluminum operations, and 16 MW for copper operations.
Serentica announced intentions to develop 1.5 GW of wind-solar hybrid power projects in India in Rajasthan, Karnataka, and Maharashtra in September of last year. Of these, roughly 600 MW of continuous clean energy was pledged to various Vedanta Group enterprises. In two years, the capacity is expected to be put into service.
Captive model and Build Own Operate (BOO) construction methods will be used for the projects. The electricity delivery agreement will be in effect for 25 years starting on the project’s commissioning date. The project will be financed with a debt-to-equity ratio of 70:30, with Vedanta and its subsidiaries owning 26% of the stock in each SPV. After signing the PDA, the SPVs must begin supplying power within 24 months.
The corporation claimed that the initiatives would protect their company from the volatility of the commodity markets and assist assure a steady supply of electricity using renewable energy sources. The decision represents the company’s first step towards fulfilling its promise to achieve net zero carbon emissions by 2050 or earlier and 2.5 GW of round-the-clock (RTC) renewable energy for operations by 2030.
Vedanta seeks to meet the power needs of capacity growth at Vedanta’s existing operation sites and achieve substantial consumption of renewable energy for smelting and associated operations. Over the PDA period, the electricity supply can avoid around 38 million tonnes of carbon gas emissions.
Vedanta recently declared that it is speeding up the conversion of its operations to green energy by increasing its sourcing of renewable energy to 1 GW. The company had issued an invitation for bids to provide hybrid renewable energy for its manufacturing sites in Rajasthan, Chhattisgarh, and Odisha. For an extra 500 MW of renewable energy, the business requested offers.
The Indian aluminum manufacturer declared in January 2022 that it had surpassed all other industrial users of renewable energy in India. In India’s power exchanges, such as Indian Energy Exchange (IEX) and Power Exchange India Ltd, the company oversaw the procurement of renewable energy (PXIL).