Vedanta Aluminium Metal Secures Long-Term Renewable Power by Integrating Battery Energy Storage System
Vedanta Aluminium Metal Limited (VAML) has approved a strategic project aimed at securing reliable and long-term renewable power supply by integrating a Battery Energy Storage System (BESS). The initiative involves a definitive agreement with Serentica Renewable India 9 Private Limited (SRI9PL) to transition the company’s existing solar power arrangement into a continuous, round-the-clock (RTC) renewable energy solution.The project will utilize an integrated BESS component designed for a capacity of 150 MW RTC and is set up utilizing VAML's existing 600 MW Solar Power Delivery Agreement (PDA). This strategic move supports the Company’s decarbonization roadmap, aims to reduce dependence on high-cost conventional grid power, and fulfills renewable energy transition goals.
As part of this group captive structure, Vedanta Aluminium Metal Limited is committing a shareholding investment equivalent to INR 165 Crore, representing a 26% stake in SRI9PL. The project itself is being developed on a Build-Own-Operate-Maintain (BOOM) basis and will be structured as a long-term power arrangement lasting 25 years from the commissioning date of the project.
The BESS initiative aims to ensure consistent renewable energy supply during non-solar hours, with the SPV expected to begin delivering power within 12 months of the PDA signing. The financing structure for the venture is set at a 70:30 debt to equity ratio.
SRI9PL, incorporated on September 30, 2022, is the specialized entity responsible for this project. It focuses on building and operating renewable energy projects in India to supply power to consumers. The company’s revenue generation commenced from FY 2026-27.
Key operational and financial details of the BESS integration project are summarized below:
| Aspect | Detail |
|---|---|
| Project Partner | Serentica Renewable India 9 Private Limited (SRI9PL) |
| BESS Capacity | 150 MW Round-The-Clock (RTC) |
| VAML Investment | INR 165 Crore (26% stake in SRI9PL) |
| Project Structure | Build-Own-Operate-Maintain (BOOM) |
| Power Supply Duration | Long term, for 25 years from commissioning |
| Financing Ratio | 70:30 Debt to Equity |
The investment into SRI9PL is structured at par, in line with the shareholder agreement. The project enables VAML to secure non-solar renewable energy necessary for its operations under a captive arrangement framework.
VAML Stock Price Movement
Shares of Vedanta Aluminium Metal Limited are edging higher to ₹445.50 as of 2:48 PM, gaining 1.34% in live trading after climbing ₹5.90 from the previous close. The stock has seen vigorous activity during the session, with approximately 9.84 million shares traded so far today.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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