The Indian mining and metal giant Vedanta's board of directors has approved plans to source 91 MW of Hybrid Renewable Power, according to a regulatory filing. 50 MW will be used for aluminium operations, 16 MW for copper operations, and 25 MW for oil and gas operations across India.
As a result, Vedanta will enter into Power Delivery Agreements (PDAs) through special purpose vehicles (SPVs) affiliated with Serentica Renewables India Private Limited (SRIPL). This company provides renewable energy based on solar, wind, and battery storage solutions.
The decision, which is in line with Vedanta's ESG vision of "Transforming for Good", is the first in a series of steps the company will take to achieve its objectives 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 developed using the Build Own Operate (BOO) and Captive models. The term of the power delivery agreement will be 25 years from the project's Date of Commissioning (COD). The SPVs are expected to start generating power within 24 months of signing the PDA.
This will protect the company from the volatility of the commodity market and ensure a steady supply of electricity using renewable energy sources. The project will be financed at a debt-to-equity ratio of 70:30, with 26 per cent of the equity in each SPV owned by Vedanta Ltd. and its subsidiaries.
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