SJVN Receives Letter of Intent from GUVNL for 500 MW Solar Energy Initiative

In a significant development in India’s renewable energy sector, SJVN Green Energy Limited (SGEL), the renewable division of SJVN, has been awarded a 500 MW solar energy project. This announcement came after the company received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) as part of its Phase-XXI initiative.

According to Smt. Geeta Kapur, a spokesperson for SGEL, the project was secured through a competitive bidding process, offering a tariff of INR 2.54 per unit. The bidding, conducted electronically on January 25, 2024, by GUVNL, encompasses a base capacity of 100 MW with an option for an additional 400 MW under the Green Shoe option. This option allows for the expansion of project capacity under the same terms and conditions initially offered.

The solar project, with an estimated construction and development cost of INR 2,700 Crores, will be situated at the GIPCL Solar Park in Khavda. The Green Shoe option exemplifies the flexible capacity extension offered to successful bidders, highlighting the innovative approaches being taken in renewable energy procurement.

Following the tariff’s approval by the Gujarat Electricity Regulatory Commission (GERC), a Power Purchase Agreement (PPA) will be formalized with GUVNL. The project’s completion is expected within 18 months from the PPA signing date, targeting November 2025 for operational commencement.

SGEL anticipates that the first year post-commissioning will see energy generation of approximately 1271.07 million units, with a projected total of over 29 billion units over 25 years. The environmental impact is notable, with an expected reduction of over 1.4 million tonnes of carbon emissions, aligning with the Government of India’s goal to decrease carbon emissions significantly.

This project marks a step forward in SGEL’s ambitious goal to achieve a generation capacity of 25,000 MW by 2030 and 50,000 MW by 2040. This initiative is in line with India’s commitment to generate 50% of its energy from non-fossil fuel sources by 2030, underscoring the nation’s dedication to sustainable and renewable energy development.