BALCO & SRIPL to Reduce Carbon Footprint
New Delhi: Vedanta’s subsidiary BALCO, one of India’s biggest aluminum producers, has struck an agreement with SRIPL, a subsidiary of Suzlon Group, to acquire hybrid renewable power for its operations. This is a huge step forward in BALCO’s quest toward sustainable development and lowering its carbon impact.
SRIPL will provide BALCO with hybrid renewable energy generated from a combination of wind and solar sources under the terms of the agreement. This power will be delivered to BALCO’s Korba-based smelter, replacing a major amount of the smelter’s present non-renewable energy needs.
BALCO‘s choice to purchase power from renewable sources is consistent with the company’s aim to minimizing its carbon footprint and contributing to a more sustainable future. The use of renewable energy will not only assist reduce greenhouse gas emissions, but will also offer a more reliable and predictable energy supply, lessening the company’s reliance on fossil fuels.
SRIPL, which has vast experience in the renewable energy sector, will be in charge of the hybrid renewable power project’s conception, construction, and operation. The project will be designed to offer a consistent and uninterrupted power supply while satisfying the specific needs of BALCO’s activities.
The project will be built on a Captive model and a Build Own Operate (BOO) basis, in accordance with current market standards. The PDA will be valid for 25 years from the project’s Date of Commissioning (COD).
The SPV is expected to begin delivering power within 24 months after the PDA signing. This would help us secure a constant supply of power from renewable energy sources and protect our firm from commodity market volatility. The project will be funded on a 70:30 debt-to-equity basis, with BALCO owning 26% of the equity in the SPV. The SPV is expected to begin delivering power within 24 months after the PDA signing. This will help Vedanta secure a constant supply of power from renewable energy sources for its aluminum operations.
To summarize, BALCO’s collaboration with SRIPL to source hybrid renewable energy is a laudable step toward sustainable development. This initiative is anticipated to minimize the company’s carbon impact and contribute to India’s ambitious renewable energy ambitions.
The success of this collaboration will motivate more businesses to embrace renewable energy and work toward a more sustainable future.