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Business News/ Companies / News/  Serentica to launch renewable energy platform in India
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Serentica to launch renewable energy platform in India

The company will specialise in providing end-to-end green solutions to the consumers, including connectivity to the appropriate transmission network using the services of group company Sterlite Power

Sterlite Power MD and Serentica Renewables spokesperson Pratik Agarwal.Premium
Sterlite Power MD and Serentica Renewables spokesperson Pratik Agarwal.

Serentica Renewables, owned by Twinstar Overseas Limited, which has controlling stake in Sterlite Power Transmission Limited and Sterlite Technologies Ltd, will launch a renewable energy platform in India that plans to supply round-the-clock carbon-free power to large consumers of energy in India.

The new green power company will specialise in providing end-to-end green solutions to the consumers, including connectivity to the appropriate transmission network using the services of group company Sterlite Power Transmission.

Vedanta Group company Hindustan Zinc last week announced that it has signed a power delivery agreement with Serentica Renewables India 4 Pvt Ltd for the delivery of renewable power to the company on a long-term basis. Hindustan Zinc has also picked up 26% stake in the Serentica SPV involving an equity infusion of 350 crore for getting initial 200 MW of green power.

Serentica plans to install 1,500 MW of solar and wind power across multiple sites in Karnataka, Rajasthan, and Maharashtra where the company has already acquired connectivity approvals. A large part of this capacity will be used to deliver close to 600MW of round-the-clock clean energy to various entities of the Vedanta Group. The investment details are still to be worked out by the company.

This capacity will be commissioned in 24 months, subject to statutory approvals. Besides, Serentica will also participate selectively in government tenders subject to the project having synergies with its overall focus of providing direct green energy solutions to commercial and industrial customers.

“Serentica will offer a new model for meeting the green power needs of commercial and industrial players. This will be done by forming renewable generation special purpose vehicle (SPV) for each customer who will also pick up to 26 per cent stake in the venture. This will then supply large quantity of green power to the consumer under long term power purchase agreement," said Serentica Renewables spokesperson Pratik Agarwal in an interview to Mint.

He said that in the medium-term, Serentica aims to install 5000 MW of carbon-free generation capacity coupled with different storage technologies. “Eventually, it aims to supply over 15 billion units of clean energy annually and displace 20 million tonnes of CO2 emissions," Agarwal said.

Serentica has already initiated talks with large C&I customers for selling its proposed renewable energy capacity with expectation of striking key deals over the next few months. Agarwal said that Serentica will also look for more investors to join it as partners with both equity and debt so that scaling is completed quickly.

Serentica is committed to reversing climate change by decarbonising energy-intensive industries such as steel, cement, aluminium and zinc. Industries account for over 30% of total carbon emissions. In India, most of the electricity demand of industrial consumers is met through thermal sources. We want to take advantage of the best-in-class policy framework rolled out by the Government of India to promote green energy in the C&I (Commercial & Industrial) sector," said Agarwal.

Though the company will focus on providing round-the-clock power needs of C&I customers, initially, it will meet about 70%of their daily requirements. With proliferation of large storage technologies, completely round-the -clock would also be provided.

Agarwal said that with bundled service Serentica will ensure that electricity tariff remains attractive. As, government has announced waiver from interstate transmission system charges for solar and wind projects commissioned up to June 30, 2025, projects commissioned over next three years could provide electricity at low rates even to C&I customers. Also, renewable purchase obligation will help green projects.

“Now, we are finding that customers are saving a good amount of money compared to buying imported coal in the market or compared to buying even expensive coal in the e-auction or buying RECs. So, when you look at those alternatives, our power is becoming cost effective," Agarwal said.

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Published: 12 Sep 2022, 04:12 PM IST
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