SJVN Bags 1,000 MW Solar Power Project, Energy News, ET EnergyWorld
Nand Lal Sharma, Chairman and CEO, SJVN informed in the statement that the company bagged the project through an open bidding process for a capacity of 1000 MW at the maximum tariff of Rs 2.45 per unit.
Sharma said SJVN bagged the total capacity of 1,000 MW with Viability Gap Funding (VGF) support of Rs 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 DISCOM.
Sharma further stated that SJVN participated in a VGF-based tender process for a 5,000 MW solar project initiated by IREDA.
He further informed that the provisional cost of construction and development of this project is Rs 5,500 crore. The project is expected to generate 2,365 million units (CU) in the first year and the cumulative energy production of the project over a 25-year period would be approximately 55,062 CU.
Sharma said that currently, SJVN has a total installed capacity of 2,016.5 MW, which includes two hydroelectric plants of 1,912 MW and four renewable plants of 104.5 MW (two solar plants of 6.9 MW and 2 wind turbines of 97.6 MW).
Previously, the SJVN had bagged three solar projects totaling 345 MW in the states of Gujarat, Uttar Pradesh and Bihar. All of these solar projects were also bagged by open tender, he said.
Sharma added that with this allocation, SJVN now has 1,345 MW of solar projects running. He said all of these solar projects are expected to be commissioned by March 2023-24, which will be a giant leap for SJVN’s renewable capacity.
The Indian government has envisioned the Power to All 24X7 vision and set a target of 175 GW of renewable energy, of which 100 GW is to be achieved through solar power by 2022.
In September last year, at the United Nations Climate Action Summit, Prime Minister Narendra Modi announced the increase in the renewable energy target to 450 GW by 2030, from 175 GW by 2022.
He informed that the Union Minister of Electricity and New and Renewable Energy, RK Singh, is extending his advice and support to all power supplies in the electricity sector to actively exploit the potential of solar energy to achieve the goal of green and affordable 24/7 energy.
In accordance with the target set by the Indian government, the SJVN has defined its common vision of an addition of capacity of 5,000 MW by 2023, 12,000 MW by 2030 and 25,000 MW by 2040.
Viability Gap Funding (VGF) refers to a one-time grant or a deferred grant, provided to support infrastructure projects that are economically justified but which are not financially viable.