SJVN Green Energy, a wholly-owned subsidiary of SJVN, has signed a power purchase agreement (PPA) with the Bhakra Beas Management Board (BBMB) for 18 MW solar projects at a tariff of ₹2.63 (~$0.032)/kWh.

The projects will be developed on four identified land parcels of BBMB in Himachal Pradesh and Punjab and are scheduled to be commissioned by August 2024.

The projects will generate 39.42 MU of electricity in the first year of operation and 917 MU of cumulative energy generation over 25 years.

Over the 25-year PPA period, the projects are expected to reduce 44,923 tons of carbon emissions.

The tender for the project was initially floated by the Punjab Energy Development Agency (PEDA) in December 2022, which was later extended twice due to lack of participation.

Since SJVN was the sole participant, a decision was sought from BBMB to proceed with the bidding process. BBMB granted its approval, and SJVN Green Energy was declared the successful bidder.

According to Mercom sources, following this approval, the rate negotiations between the parties took a long time, which was the main reason for the delay in signing the PPA.

SJVN is required to sign a rent agreement with the BBMB for the land parcels for 27 years, i.e., 25 years of the agreement, 13 months of installation, and six months for vacating the land.

PEDA has mandated the projects’ declared capacity utilization factor (CUF) to be not less than 21%. SVN Green Energy is required to maintain generation to achieve annual CUF within + 10% and -15% of the declared value until the end of ten years, subject to the CUF remaining at a minimum of 19% and within +10% and -20% of the declared value of the CUF after that until the end of 25 years.

SJVN plans to install over 10 GW of renewable energy capacity in the next three years and achieve the target of 25 GW by 2030 and 50 GW by 2040.

Recently, SJVN Green Energy won the contract to develop three solar power projects of a cumulative capacity of 320 MW from Assam Power Distribution Corporation. The estimated cost of the projects is ₹19 billion (~$229.87 million).

Earlier, SJVN Green Energy had received the letter of intent from the Punjab State Power Corporation to develop 1,200 MW of solar power projects. The company will develop 1,000 MW of solar projects anywhere in the country, and the balance of 200 MW will be developed in Punjab.