Serentica Renewables and Hindustan Zinc have signed a power delivery agreement (PDA), based on a recent stock exchange filing. Under the partnership, Serentica Renewables will increase its clean energy supply to Hindustan Zinc from 450MW to 530MW. Consequently, the share of clean energy in Zinc’s electricity consumption will grow to 70%.
This landmark agreement highlights an underlying shift in industrial power procurement strategies. Companies are moving towards Time Block-Based energy solutions and away from traditional round-the-clock (RTC) models.
Under this agreement, Serentica Renewables will ensure 315 MW of uninterrupted energy supply to Hindustan Zinc through every 15-minute time block. By 2027, it will operationalise new wind, solar, and energy storage projects across high-resource locations across India. This will ensure seamless and reliable power supply for Hindustan Zinc.
Hindustan Zinc is a part of the Vedanta Group and is renowned as the world’s third-largest silver-producing company. The company exports its products to 40+ countries and commands a market share of over 75% in primary zinc demand. It is also the world’s second-largest integrated zinc-producing company.
In 2024, it was identified as one of the world’s most sustainable companies in the metals and mining industry. By enhancing its operational efficiencies, it has reduced its GHG emissions by 14% already. It aims to achieve net zero carbon emissions by 2050. This agreement is expected to further its ambitions of becoming a carbon-neutral company.
As of 1.37 PM on March 11, Hindustan Zinc share price was trading at ₹425.55, which is a 0.21% decline from the previous close. Based on the company’s annual reports, its total output of mined zinc, mined lead, and refined zinc grew year-on-year. However, its revenue from operations declined from ₹34,098 crore to ₹28,932 crore in FY 2023-24.
The signing of a unique PDA between Hindustan Zinc and Serentica Renewables marks a major shift toward the adoption of Time Block-Based energy solutions. This initiative aligns with Hindustan Zinc’s overarching sustainability goals by driving its use of clean energy and making it a net-zero carbon emitter by 2050.
Based on strong business fundamentals, the company is expected to bolster its reliance on clean energy sources for driving sustainable economic growth in the future. By adopting eco-friendly measures, it can improve its credentials as a green company and drive market expansion in the long-run.
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Published on: Mar 11, 2025, 2:27 PM IST
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