The Board of Directors of Vedanta Group has approved the procurement of 691 MW of renewable energy to power the company’s aluminium, copper, and oil and gas operations across India. The company will obtain 91 MW of hybrid renewable energy which includes 50 MW for aluminium operations, 16 MW for copper operations, and 25 MW for oil and gas operations and 600 MW of solar energy for aluminium operations.
In order to implement these renewable energy projects for long-term power supply to its operations, Vedanta will create special-purpose vehicles (SPVs) with Serentica Renewables India. Vedanta Limited and its subsidiaries will own 26 per cent of the equity in the respective SPVs, with Serentica Renewables India owning the rest. The renewable energy projects will be built by the SPVs on a ‘captive’ and ‘build-own-operate’ basis. The project will be funded with a debt-to-equity ratio of 70:30. Vedanta’s consuming units will pay electricity tariffs to the respective SPV following project completion under long-term power delivery agreements signed with them.
In September 2022, Vedanta Limited invited expression of interest for an additional 500 MW of renewable energy. The company has set a target to achieve 2.5 GW of renewable energy for its operations by 2030. The move was taken in line with Vedanta’s ESG vision of “Transforming for Good” and is dedicated towards realising its objective of becoming net zero carbon by the year of 2050 or earlier.
