In a significant development towards expanding India’s renewable energy capacity, SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of SJVN Limited, has been awarded the Letter of Intent (LOI) by Punjab State Power Corporation Limited (PSPCL) on July 21, 2023. The LOI entails the procurement of 1200 MW Solar Power, as revealed in an exchange filing made by the company on Saturday.
As per the terms of the LOI, SGEL is entrusted with the development of a 1000 MW solar project anywhere in the country, while the remaining 200 MW will be set up within the state of Punjab, in accordance with the Request for Selection (RfS) provisions. The solar projects are to be developed under the Build Own and Operate (BOO) framework, with a tentative construction and development cost of around INR 7000 Crores.
The projected commissioning timeline for the solar projects is set at 18 months from the date of signing the Power Purchase Agreement (PPA), aiming for completion by December 2024. The PPA will span a period of 25 years and is expected to facilitate the generation of approximately 2997 Million Units (MUs) in the first year, contributing to a cumulative energy generation of about 69,661 MUs over 25 years.
With a promising environmental impact, the commissioning of this solar project is anticipated to reduce 34.2 Lakhs Tonnes of carbon emissions, aligning with the Government of India’s mission of curbing carbon emissions. The addition of 1200 MW capacity marks a significant milestone, with SJVN/SGEL’s renewable energy portfolio crossing the psychological barrier of 5 GW, further supported by a 25-year PPA.
Looking ahead, SJVN Limited remains steadfast in its commitment to achieving a generation capacity of 25 GW by the end of the current decade, with over half of this capacity stemming from renewable resources. This project signifies a significant step forward for India’s renewable energy landscape, aligning with the country’s ambitious goals of transitioning towards a greener and sustainable future.