SJVN Bags ₹70 Billion Contract to Develop 1.2 GW of Solar Projects

SJVN Green Energy, a wholly-owned subsidiary of SJVN, has received the letter of intent from the Punjab State Power Corporation (PSPCL) for the development of 1,200 MW of solar power projects.

The company will develop 1,000 MW of solar projects anywhere in the country, and the balance of 200 MW will be developed in Punjab.

PSPCL will procure 1,000 MW of solar power from projects anywhere in the country at a tariff of ₹2.53 (~$0.031)/kWh and the balance of 200 MW from projects in Punjab at a tariff of ₹2.75 (~$0.034)/kWh.

The projects will be developed on a build, own, and operate basis, and the total cost of the contract is estimated to be nearly ₹70 billion (~$853.51 million).

The tender for procuring power from 1,000 MW of grid-connected solar power projects was floated by PSPCL in June last year.

The remaining 200 MW capacity secured by SJVN Green Energy is a part of the 1,000 MW of solar projects tendered to be developed in Punjab. The tender for this capacity was floated in April last year.

The power purchase agreement (PPA) between PSPCL and SJVN Green Energy will soon be signed.

The projects must be commissioned within 18 months from the date of the signing of the PPA and are expected to come online by the end of next year.

SJVN Green Energy must furnish a performance guarantee of ₹1.18 million (~$14,422)/MW of the allocated capacity.

PSPCL has also mandated the use of solar modules listed in the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy.

Further, the projects are expected to generate 2,997 million units (MU) in the first year, and the cumulative energy generation over 25 years would be around 69,661 MU. The commissioning of the projects will offset more than 3.4 million tons of carbon emissions.

The company aims to achieve 25 GW of generation capacity by the end of the current decade, more than half of which is bound to come from renewable resources.

The Ministry of Power recently approved SJVN’s request to set up overhead transmission lines for its 1,000 MW solar power project in Bikaner, Rajasthan.

Earlier, SJVN had invited bids to select renewable developers for the supply of 1,500 MW of power from interstate transmission system (ISTS)-connected renewable energy projects with energy storage capacities across India.

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