Vedanta Group to source 580 MW renewable energy for operations in India

7 Apr 2022 , 01:33 AM

Vedanta has entered into certain long term power security agreements for Green Renewable Energy RE power for Hindustan Zinc Bharat Aluminum Company and Vedanta Jharsuguda Aluminium Operations via captive power projects which will be created through dedicated Special Purpose Vehicle SPV for each entity Vedanta Board has approved plans for the Group to source 580 MW of Renewable Energy RE for its operations across India The company has announced today that it has signed a Power Delivery Agreement PDA with special purpose vehicles SPVs ie affiliates of Sterlite Power Technologies SPTPL C a company engaged in business to supply hybridbased power with solar wind and storage solutions Aligned with Vedantas 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 25 GW of Round the Clock RTC Renewable Energy for its operations by 2030 Vedanta aims to partially replace existing captive thermal power capacities with Renewable Energy for smelting and associated operations and meeting power requirements of capacity expansion at Vedanta Aluminium Jharsuguda Balco and Hindustan Zinc The overall arrangement is to procure 580 MW of renewable power where SPTPL and its affiliates are setting up a 1960 MW hybridbased renewable energy capacity to achieve this generation in a combination of Solar Wind and Storage solutions Once this power supply comes online it has the potential to prevent about 27 million tons of GHG emissions from entering the atmosphere In line with prevailing market practices these projects will be built on Group Captive model and Build Own Operate BOO basis The term of the power delivery agreement will be for a period of 25 years from the Date of Commissioning DOC of the project The SPVs are expected to start delivering the power within 24 months of the PDA signing This will be helpful in securing continuous supply of power through renewable energy source at lower cost and insulate the business from commodity market volatility The project will be funded on 7030 debt to Equity basis; Vedanta and its subsidiaries will own 26Percentage of equity in the respective SPVs at a total investment of up to Rs 850 crore with an expected IRR of more than 25Percentage