Bharat Aluminium Company (BALCO), a subsidiary of Vedanta, has entered into a Power Delivery Agreement (PDA) with a special purpose vehicle (SPV) of the renewable energy developer Serentica Renewables India (SRIPL) to source 105 MW of hybrid power for its aluminum operations in Chhattisgarh.

The project would be operated under the captive mode and be constructed on the Build Own Operate (BOO) basis. The project will be financed on a 70:30 debt-to-equity basis, with BALCO holding a 26% equity share in the SPV.

The SPV will likely commence delivering the power within two years of the PDA signing. The PDA will have a 25-year tenure, starting from the project’s commissioning date (COD).

Serentica Renewables is wholly owned by Twinstar Overseas, which also has controlling stakes in Sterlite Power Transmission and Sterlite Technologies.

The company said that the recent development represents the initial step in a series of measures to achieve its target of achieving net zero carbon by 2050 or earlier and employing 2.5 GW of Round the Clock (RTC) renewable energy for its activities by 2030.

Further, it said that the company is shifting toward using renewable energy for smelting and other related activities and fulfilling the power needs of capacity expansion at BALCO operations.

The PDA will ensure a steady and uninterrupted power supply through renewable energy sources, protecting our business from the volatility of the commodity market, Vedanta said.

Earlier in January, the Vedanta Group said it would source 600 MW of solar and 91 MW of hybrid renewable power through open access under the captive mode for its various operations nationwide.

Recently, in October 2022, Vedanta announced that it is scaling up its renewable energy sourcing to 1 GW and accelerating the transition of its operations to green energy. The company invited bids for an additional 500 MW of renewable energy. The company had invited bids to supply hybrid renewable power for its manufacturing facilities in Rajasthan, Chhattisgarh, and Odisha.