Hindustan Zinc’s Renewable Energy Procurement 530 MW from Serentica – EQ
In Short : Hindustan Zinc has signed an agreement to procure 530 MW of renewable energy from Serentica. This move aims to support the company’s sustainability goals and reduce its carbon footprint. By leveraging renewable sources, Hindustan Zinc is positioning itself to enhance energy efficiency and contribute to India’s broader transition toward clean energy solutions.
In Detail : Hindustan Zinc has announced a significant agreement to procure 530 MW of round-the-clock (RTC) power from Serentica Renewables under a group captive arrangement. This initiative is part of the company’s broader strategy to enhance its sustainability efforts and transition toward renewable energy sources.
To facilitate this partnership, Hindustan Zinc will invest ₹3.27 billion to acquire a 26% stake in Serentica and its affiliates. This investment underscores the company’s commitment to clean energy and its long-term vision for reducing carbon emissions across its operations.
Serentica will develop renewable energy projects across India over the next 25 years, with the commissioning of these projects occurring in phases starting in 2027. This long-term collaboration aims to ensure a steady supply of renewable energy to Hindustan Zinc, aligning with the company’s operational needs and sustainability goals.
The current agreement builds upon two previous power delivery arrangements, demonstrating a continuing partnership between Hindustan Zinc and Serentica. The board of directors at Hindustan Zinc has approved this latest initiative, highlighting its strategic importance.
In July 2024, Hindustan Zinc initiated the first phase of this integration by beginning to source clean energy from Serentica’s Bikaner project in Rajasthan. This phase involves securing 450 MW of RTC renewable energy, which is essential for ensuring operational reliability and sustainability for Hindustan Zinc’s main business units.
In addition to these developments, Serentica Renewables marked a milestone in March 2024 by securing its inaugural overseas commercial bank loan, amounting to ₹35 billion. This foreign currency loan is intended to support the implementation of its RTC renewable energy initiatives in India, further solidifying the company’s position in the renewable sector.
Overall, this partnership reflects a growing trend in the Indian industry toward sustainable practices and renewable energy adoption. By investing in such initiatives, Hindustan Zinc aims to contribute positively to the environment while also ensuring the reliability of its energy supply.
Through these strategic moves, both Hindustan Zinc and Serentica Renewables are poised to play significant roles in advancing India’s renewable energy landscape and achieving its climate goals.
