Shares of state-owned SJVN Ltd surged nearly 5% in morning trade on Monday, March 18, after the company's renewable arm SJVN Green Energy received the Letter of Intent (LOI) for a 200 MW solar project in Gujarat.
The estimated construction and development cost of this project stands at ₹1,100 crore. The project is set to be implemented within the Gujarat State Electricity Corporation Limited (GSECL) Solar Park located in Khavda, the company said in a stock exchange filing.
The public sector power distributor informed the bourses that SJVN Green Energy received the Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for the solar project in GUVNL Phase–XXIII.
The company secured the 200 MW solar project via tariff-based competitive bidding at a rate of ₹2.66 per unit, under the build own and operate (BOO) model. GUVNL held the reverse auction (e-RA) for this project on March 2.
Reacting to the development, SJVN shares rose as much as 4.8% to an intra-day high of ₹130.8 on BSE.
The Power Purchase Agreement (PPA) will be signed with GUVNL once the tariff is approved by GERC. The project is scheduled to be commissioned within 18 months.
Upon commissioning, the solar project is expected to generate 508.40 million units in the first year, with a cumulative energy generation projection of approximately 11698.16 million units over 25 years.
The commissioning of this project is projected to reduce carbon emissions by 57,3210 tonnes.
This is the third order the state-owned power producer has bagged this month, so far.
On March 13, SJVN announced that it had secured an LoI from Gujarat Urja Vikas Nigam Ltd for a 500-megawatt solar project in Gujarat. The estimated construction cost of the project is ₹2,700 crore.
On March 7, SJVN Green Energy Ltd obtained LoAs for solar power projects with a cumulative capacity of 1,352 MW. These projects would be executed at several locations in Maharashtra.
SJVN Green Energy Ltd is rapidly advancing towards its Shared Vision of reaching 25000 MW by 2030 and 50000 MW by 2040.
Shares of SJVN Ltd were trading 1.56% higher at ₹126.75 apiece on BSE at 10:15 am.
