SJVN Limited, a joint venture between the Union government and the Himachal Pradesh government, has bagged a 200 MW grid-connected solar photovoltaic project in Bihar in an auction held by Bihar Renewable Energy Development Agency (BREDA) through the open competitive tariff bidding process.
SJVN quoted a tariff of ₹3.11 (~$ 0.041)/kWh for the 200 MW of projects to be built on a build, own, and operate basis during the e-reverse auction.
Three other bidders also participated in the auction.
According to Nand Lal Sharma, Chairman & Managing Director, SJVN, the tentative cost of the construction and development of the project is ₹10 billion (~$134.7 million). The project is expected to generate 420.48 MU in the first year and generate about 10,512 MU over 25 years.
BREDA and SJVN will sign the purchase power agreement for 25 years.
The 200 MW of solar capacity won by SJVN is part of the 250 MW tender issued by BREDA.
The tender has been reissued and modified more than once since it was first floated in June 2019. In the instant bidding process, a tariff of ₹3.45 ($0.05)/kWh was offered. But this tariff was not approved by the state regulator stating it to be on the higher side and recommended that the tariff be renegotiated in the range of ₹3.05 ($0.043)/kWh to ₹3.15 ($0.044)/kWh. The regulator also suggested that in case the bidders and BREDA cannot arrive at a renegotiated tariff in the suggested range, then the instant bid process be canceled, and BREDA retender the projects.
In December 2019, BREDA reissued the same tender with a revised ceiling tariff of ₹3.15 (~$0.042)/kWh. Again, in May 2020, BREDA removed the tariff ceiling of ₹3.15 (~$0.042)/kWh and extended the bid submission deadline. In December 2020, the tender was once again reissued.
SJVN has a total installed power capacity of 2,016.5 MW, including two hydropower projects of 1,912 MW, two solar projects of 6.9 MW, and two wind projects of 97.6 MW.
Earlier this year, SJVN won a 100 MW solar project in the Gujarat Urja Vikas Nigam Limited’s auction. It quoted a tariff of ₹2.64 (~$0.036)/kWh.
SJVN also plans to participate in Indian Renewable Energy Development Agency’s auction for 5 GW of grid-connected solar projects in India under the Central Public Sector Undertaking program. SJVN has also pre-booked solar power sale of 150 MW at ₹2.44/kWh with New Delhi Municipal Corporation for 25 years.