SJVN Green Energy (SGEL), a wholly owned subsidiary of SJVN, has signed a power usage agreement (PUA) and power purchase agreement (PPA) with Rajasthan Urja Vikas and IT Services (RUVITL) for the supply of 600 MW of solar power for 25 years.

The PUA entails the supply of 500 MW of solar power from SGEL’s 1 GW Bikaner solar power project at a tariff of ₹2.57 (~$0.0311)/kWh. SGEL had won the project capacity in the Indian Renewable Energy Development Agency’s auction for 5 GW of grid-connected solar projects (Tranche-III) under the Central Public Sector Undertaking (CPSU) Program (Phase-II).

The PPA involves the 100 MW solar power to be supplied at a tariff of ₹2.62 (~$0.0317)/kWh from the project SGEL won in Rajasthan Urja Vikas Nigam’s auction to supply 1 GW of power from state transmission utility (STU)-connected solar power projects in the state.

The 1 GW Bikaner solar power project is claimed to be the country’s largest single-location project, and it is being developed at the Banderwala village in Bikaner, Rajasthan. The project will cost an estimated ₹54.91 billion (~$663.63 million) and is expected to be commissioned by September 30, 2024. It would generate 2,454.84 MU in the first year of operation and 56,474 MU over 25 years.

With the recent PUA with RUVITL, SGEL has not secured the supply agreement for the entire 1 GW capacity of the project; the other two beneficiaries include Uttar Pradesh Power Corporation for 200 MW and Jammu and Kashmir Power Corporation for 300 MW.

The 100 MW capacity under the PPA is being developed on 387.56 acres of land of Sambhar Salts at Nawa, Rajasthan, leased to SGEL for 28 years.

The estimated cost of the project is ₹5.5 billion (~$66.47 million) and is expected to be commissioned within 18 months.

The project developed on a build-own-operate basis is expected to generate 252 MU in the first year and 5,866 MU over its 25-year project lifetime.

Recently, SGEL broke ground for its 50 MW solar power project at the Sitalmari village of Sonitpur district in Assam.

Subscribe to Mercom’s India Solar Tender Tracker to stay on top of tender activity in real time.