• Fri. Dec 1st, 2023

SJVN signs ₹70 billion contract to develop 1.2 GW solar power projects

SJVN signs ₹70 billion contract to develop 1.2 GW solar power projects

SJVN Green Energy is a wholly owned subsidiary S.J.V.NReceived letter from Punjab State Power Corporation (P.S.P.C.L) for the development of 1,200 MW solar power projects.

The company will develop 1,000 MW of solar power projects anywhere in the country and the remaining 200 MW in Punjab.

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

Based on build, own and operate projects, the total cost of the contract will be around ₹70 billion (~$853.51 million).

PSPCL had floated a tender for purchase of power from 1,000 MW grid-connected solar power projects in June last year.

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

A Power Purchase Agreement (PPA) between PSPCL and SJVN Green Energy will be signed soon.

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

SJVN Green Energy has to provide a performance guarantee of ₹1.18 million (~$14,422)/MW of 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.

Also, the projects are expected to generate 2,997 million units (MU) in the first year and the cumulative power generation over 25 years will be around 69,661 MU. Commissioning of the projects will offset over 3.4 million tonnes 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 will come from renewable resources.

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

SJVN had earlier invited bids to select renewable developers to supply 1,500 MW of electricity from renewable energy projects connected to the Inter-State Transmission System (ISTS) with energy storage capacity across India.

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