Integrated mining and resources company Hindustan Zinc will procure 530 MW of round-the-clock (RTC) power from Serentica Renewable India’s renewable energy projects under a group captive arrangement.

Serentica will supply the power for 25 years.

The procurement of 530 MW includes two previous power delivery agreements entered into between Hindustan Zinc and Serentica.

Hindustan Zinc’s board of directors has approved investing ₹3.27 billion (~$38.96 million) in Serentica and its affiliates for a 26% equity stake.

Serentica or its affiliates will create captive power projects in different parts of India based on location suitability and provide renewable power to Hindustan Zinc on a long-term basis. The projects will be commissioned in phases by 2027.

In January, Serentica secured ₹35 billion (~$425 million) for the 530 MW wind-solar hybrid project in Rajasthan and Maharashtra from a consortium of three international banks and three Indian lenders. This project will replace 24% of Hindustan Zinc’s coal-based power supply with firm dispatchable green power.

Hindustan Zinc announced in July that Serentica had started supplying renewable energy from a 180 MW solar project in Bikaner, Rajasthan.

Serentica has a 4 GW portfolio under construction. It supplies RTC power to metals, mining, oil, and gas customers in Rajasthan, Odisha, and Chhattisgarh, with 650 MW commissioned to date.

In 2022, Hindustan Zinc acquired a 26% stake in a special purpose vehicle, Serentica Renewables India 4, for ₹3.5 billion (~$43 million) and executed a long-term renewable power delivery agreement up to a capacity of 200 MW.

Captive renewable power procurement arrangements are increasingly becoming popular in India’s commercial and industrial sector, given the savings on electricity costs they bring. The use of renewable energy also helps their operations become more sustainable. Mercom India will host its C&I Clean Energy Meet in Bhubaneswar, Odisha on November 15, 2024. The events will bring clean energy solutions providers and consumers together to discuss power requirements, cost benefits, challenges, opportunities, and solutions.