India state-owned SJVN receives letter of intent for a 200 MW solar power project

The estimated cost for the project is $132.5m.

State-owned Indian hydroelectric power company SJVN has accepted a letter of intent (LOI) from the Indian regulation board Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 MW solar power project in GUVNL Phase XXII.

The power company's subsidiary, SJVN Green Energy Limited (SGEL) initially claimed the 100 MW solar project through bidding and advanced with 100 MW under the Greenshoe option at a tariff of Rs 2.63 per unit.

The solar power project is on an e-RA conducted Build Own and Operate (BOO) basis by GUVNL in December 2023. The tentative cost of construction and development of the project is $132.5m (Rs 1100 crores), with development being handled by SGEL through an EPC contract.

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The power purchase agreement (PPA) will be executed with GUVNL, and the adoption of tariffs will be pushed by GERC. The solar power project is estimated to be commissioned by 18 months from the date of signing of the PPA for 25 years.

The 200 MW project is estimated to generate 508.4 million units for its first year of commission, along with a cumulative energy generation of 11836.28 million units for 25 years. The GUVNL project is also projected to reduce 579976 tonnes of carbon emission, contributing to the GoI mission.