Bharat Aluminium Company inks pact for hybrid renewable power

Bharat Aluminium Company (BALCO), a Vedanta subsidiary, has signed a power delivery agreement (PDA) to procure 105 MW of hybrid renewable energy for its aluminium operations at BALCO, Chhattisgarh.

The agreement will be carried out through a special purpose vehicle (SPV), an affiliate of Serentica Renewables India (SRIPL), a company that engages in the supply of renewable energy based on solar, wind and battery storage solutions.

Vedanta plans to deploy a significant amount of renewable energy for smelting and related operations as well as to supply BALCO operations with the additional power required for capacity expansion. The build-own-operate (BOO) method and a captive model will be implemented to construct the project.

The PDA will remain in effect for 25 years following the project’s completion. The SPV is anticipated to start supplying power within 24 months of signing the PDA. The debt-to-equity ratio for the project will be 70:30, with BALCO owning 26 percent of the SPV.

The company’s vision to become ‘net zero carbon by 2050 or sooner’ and to ‘use 2.5 GW of round the clock (RTC) renewable energy for its operations by 2030’ are both part of Vedanta’s ESG vision.

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