State-owned power producer SJVN Ltd has made significant strides in the renewable energy sector with the acquisition of a Letter of Intent (LoI) for a 500-megawatt solar project in Gujarat.
The solar project, with an estimated construction cost of ₹2,700 crore, marks a significant milestone in SJVN’s commitment to sustainable energy solutions.
In a recent stock exchange filing, SJVN announced that its renewable energy arm, SJVN Green Energy Ltd (SGEL), has been awarded the LoI from Gujarat Urja Vikas Nigam Ltd (GUVNL) for a 500MW solar project in GUVNL Phase-XXI. This project includes a 100MW segment and a 400MW green shoe option, demonstrating SJVN’s dedication to expanding its renewable energy portfolio.
The proposed project will be developed at the GIPCL Solar Park located in Khavda, Gujarat, further enhancing the state’s renewable energy infrastructure.
SJVN Green Energy secured the 500MW project through a tariff-based competitive bidding process in January, offering a competitive price of ₹2.54 per unit on a build-own-operate (BOO) basis.
Upon approval of the tariff by the Gujarat Electricity Regulatory Commission (GERC), GUVNL will execute the power purchase agreement (PPA), paving the way for project commissioning within 18 months. This aggressive timeline aims for the project to be operational by November 2025.
Once operational, the solar project is expected to generate approximately 1271.07 million units in the first year, with a cumulative energy generation of 29,245.4 million units over 25 years.
While SJVN’s ambitious renewable energy endeavors have garnered attention, the company’s shares experienced a slight decline, trading 8.8% lower at ₹102.55 apiece on the BSE at 2:18 pm. However, this setback does not diminish the significance of SJVN’s strategic move towards sustainable energy production.
