BALCO and SRIPL collaborate for 105 MW renewable power for Chhattisgarh smelter

Bharat Aluminium Company Limited (BALCO) has entered into a power delivery agreement (PDA) to source 105 MW hybrid renewable power for its aluminium operations at BALCO, Chhattisgarh, through special purpose vehicle (SPV), i.e., affiliates of Serentica Renewables India Private Limited (SRIPL).

The project will be built on captive model and build, own and operate basis. The term of the PDA will be for a period of 25 years from the date of commissioning of the project. The SPV is 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 and insulate the business from commodity market volatility. The project will be funded on 70:30 debt to equity basis and BALCO will own 26 per cent of equity in the SPV.