SJVN wins 1 GW solar project contract by bidding 2.45 per unit tariff

NEW DELHI: State-owned hydroelectric producer SJVN Ltd was awarded a 1 gigawatt (GW) solar power project contract as part of the bids launched by the Indian Renewable Energy Development Agency (IREDA) citing a tariff of ??2.45 per unit.

This comes against the backdrop of India’s solar energy tariffs starting to rebound from record lows last December, boosted by factors such as rising commodity prices and rising cost of solar equipment. imported from next year, as reported by Mint earlier.

“Nand ​​Lal Sharma, Chairman and CEO, SJVN informed that the company bagged the project through an open bidding process for a quoted capacity of 1000 MW at the maximum rate of ??2.45 per unit, ”SJVN said in a statement.

Rising commodity costs and a base tariff of 40% on solar modules and 25% on solar cells that will be imposed from April 2022 influence hotly contested auction rounds, developers calibrating these new realities while placing bids. Solar power tariffs in India hit a record high of ??1.99 per unit in December 2020 at auction conducted by Gujarat Urja Vikas Nigam Ltd.

Sharma said that SJVN bagged the total capacity of 1,000 MW with support from Viability Gap Funding (VGF) of ??44.72 Lakh per MW by the Indian government. Electricity generated by the above projects will only be for self-use or for use by government / government entities, either directly or through discoms, ”the statement read and added:“ Sharma further stated that SJVN had participated in a VGF-based tender process for the 5,000 MW solar power project initiated by IREDA. “

SJVN Ltd plans to have a capacity of 25 GW by 2040. The company has an operational portfolio of 2 GW and is executing 27 projects in the hydropower, thermal, solar and wind sectors in India, Bhutan and Nepal.

“He further informed that the provisional cost of construction and development of this project is ??5,500 crores, “the statement read.

SJVN Ltd has also advocated for other Nepal hydropower projects as part of India’s program to help build an energy security architecture focused on South Asia.

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About Natalee Broderick

Natalee Broderick

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