Bharat Aluminium Company Limited (BALCO), a subsidiary of Vedanta Limited has entered into a Power Delivery Agreement ("PDA") to source 200 MW Solar Renewable Power for its Aluminium operations at BALCO, Chhattisgarh, through Special Purpose Vehicle (SPV), 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 BALCO Operations.
In line with prevailing market practices, the project will be built on Captive model and Build Own Operate (BOO) basis. The term of the PDA will be for a period of 25 years from the Date of Commissioning (COD) of the project. The SPV is expected to start delivering the power within 24 months from the date of completion of the Conditions Precedent. 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 and BALCO will own 26% of equity in the SPV.
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