SJVN gets Letter of Intent for Development & Procurement of 1200 MW Solar Power for Punjab
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Shimla: July 22, 2023
Nand Lal Sharma, Chairman & Managing Director, SJVN informed that SJVN has received the Letter of Intent (LOI) from Punjab State Power Corporation Limited (PSPCL) for procurement of 1200 MW Solar Power. SJVN Green Energy Limited (SGEL; a wholly owned subsidiary of SJVN) will develop 1000 MW project anywhere in the country and balance 200 MW in the state of Punjab.
Nand Lal Sharma informed that PSPCL will be procuring 1000 MW energy produced anywhere in India at a tariff of Rs. 2.53 per unit, while 200 MW energy produced in Punjab will be procured at a tariff of Rs. 2.75 per unit. Development of these projects involves an investment of around Rs. 7000 Crores, which will be on Build Own and Operate (BOO) basis.
Sharma further stated that the projects are expected to generate 2997 million units in the first year and the cumulative energy generation over a period of 25 years would be around 69661 million units. The commissioning of this Project is expected to reduce more than 34 Lakh Tonnes of carbon emission.
The Project shall be commissioned in a period of 18 Months from the date of signing of Power Purchase Agreement (PPA) and expected to be commissioned by the end of next year. The PPA will be signed shortly between PSPCL and SGEL for 25 years.
With the signing of this agreement, the portfolio of SJVN is now 55527 MW. Company is on rapid progression to achieve its Shared Vision of being 5000 MW by 2023-24, 25000 MW by 2030 & 50000 MW by 2040. This Shared Vision has been formulated in sync with the commitment of the Government of India of generating 50% energy from non-fossil fuel-based energy resources by 2030.
