Sterlite Copper, a subsidiary of Vedanta Ltd, has partnered with Serentica Renewables India to establish a captive hybrid renewable energy project, aimed at sourcing 16 MW of green power for its Silvassa Unit.
Under a power delivery agreement (PDA), the two companies will form a special purpose vehicle (SPV) to develop the project. The PDA will be effective for 25 years, starting from the project’s commencement, with commercial operations set to begin in August 2024. Serentica Renewables India will construct and operate the project on a build-own-operate basis. The project will be financed with a 70% debt-to-equity ratio, with Sterlite Copper retaining a 26% equity share in the SPV.
According to Puneet Khurana, Deputy CEO of Sterlite Copper, this collaboration will enable the company to transition smoothly from conventional thermal power to hybrid renewable energy, reducing its carbon footprint.
The hybrid renewable energy project is expected to decrease Scope 2 Greenhouse Gas (GHG) emissions by 64,535 metric tonnes of carbon dioxide equivalent (MTCO2e). This initiative aligns with Vedanta’s target of achieving net-zero carbon emissions by 2050.