GUVNL sends SJVN a letter of intent for a 200 MW solar project.

SJVN Limited on Wednesday said it has received the Letter of Intent (LoI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for 200 MW solar power project in GUVNL Phase XXII. SJVN Green Energy Limited, a wholly owned subsidiary of SJVN has earlier bagged the initial 100 MW Solar project through bidding and further 100 MW under the Greenshoe option at a tariff of Rs 2.63 per unit on build own and operate basis in e-RA conducted by GUVNL in December 2023. The greenshoe option is a method in which the implementing agencies offer additional capacity to the successful bidder at same terms and conditions under RfS.

The project is estimated to cost Rs 1100 crores to develop and build. Anywhere in India, SGEL will develop the ground-mounted solar installation under an EPC contract. The power purchase agreement (PPA) between GUVNL and the GERC will be signed following the tariff's acceptance. After the PPA is signed, the project must be completed within eighteen months. GUVNL and SGEL will sign this PPA, which will be valid for 25 years.

It is anticipated that the project will produce 508.4 million units in the first year following commissioning, with a projected cumulative energy generation of 11,836.28 million units during a 25-year period. This project's commissioning is anticipated to lower carbon emissions by 5,79,976 tonnes, which will support the government's goal of reducing carbon emissions.