Vedanta Aluminium Metal Limited (VAML) has approved the execution of definitive agreements with Serentica Renewables India 9 Private Limited (SRI9PL) for the integration of a 150 MW Battery Energy Storage System (BESS) into its existing 600 MW Solar Power Delivery Agreement (PDA). The project will enable the conversion of the existing solar power arrangement into a Round-the-Clock (RTC) renewable power solution with 95% assured supply, ensuring reliable renewable power during non-solar hours while supporting the company’s renewable energy transition, decarbonization roadmap and regulatory compliance requirements.
The approval was granted by the Board of Directors of VAML at its meeting held on July 30, 2026, in continuation of Vedanta Limited’s earlier announcement dated January 23, 2023, regarding the group’s long-term renewable power supply tie-up.
As part of the Group Captive structure, VAML will infuse ₹165 crore, representing a 26% investment in the project, in compliance with the applicable group captive regulations. The remaining investment in the Special Purpose Vehicle (SPV) will be held by Serentica Renewables India Private Limited, a fellow subsidiary, and/or its affiliates or any other party. The project will be funded on a 70:30 debt-to-equity basis.
The BESS project will be developed under the Build-Own-Operate-Maintain (BOOM) model and power will be supplied under a 25-year long-term arrangement from the date of commissioning. The SPV is expected to start delivering power within 12 months of the signing of the Power Delivery Agreement (PDA).
According to the company, the project forms part of the Group’s ESG initiatives to secure renewable energy during non-solar hours (1800 to 0800 hours) under a captive arrangement, reducing dependence on higher-cost conventional power procured through the power exchange. Under the arrangement, VAML will receive a contracted renewable energy supply of 150 MW during non-solar hours (1800 to 0800 hours) and up to 250 MW during solar hours (0800 to 1800 hours).
SRI9PL, incorporated on September 30, 2022, is a Special Purpose Vehicle established to build, own and operate renewable energy projects in India. The company commenced revenue generation in FY 2026–27 and will develop the Battery Energy Storage System along with the required infrastructure to supply renewable power to VAML in accordance with the captive provisions under the Electricity Rules, 2005.
VAML stated that its ₹165 crore investment in SRI9PL will be made at par in accordance with the shareholders’ agreement to maintain its shareholding in the SPV. The company further noted that the renewable energy tariff has been independently benchmarked by a third party with reference to prevailing market tariffs for renewable energy power, while all requisite statutory and regulatory approvals will be obtained as applicable.
