SJVN Bags Contract to Develop 320 MW Solar Projects in Assam

The estimated cost of the projects is ₹19 billion


SJVN Green Energy, a wholly-owned subsidiary of SJVN, has won the contract to develop three solar power projects of a cumulative capacity of 320 MW from Assam Power Distribution Corporation (APDCL).

The estimated cost of the projects is ₹19 billion (~$229.87 million).

APDCL had floated the tenders for 50 MW, 70 MW, and 200 MW solar projects in February this year and had set a ceiling tariff of ₹4 (~$0.0484)/kWh.

The 50 MW and 70 MW solar projects will be developed under the solar park category in Dhekiajuli and Dhubri, respectively, and have been allotted a tariff of ₹3.92 (~$0.0474)/kWh.

The third project of 200 MW capacity can be developed anywhere in Assam and will supply power at ₹3.90 (~$0.0472)/kWh.

The projects will be developed on a build, own, and operate basis and are expected to generate a cumulative 628 million units of electricity in the first year and a cumulative 14,591 million units over the 25-year power purchase agreement (PPA) period with APDCL.

SJVN Green Energy must complete the projects within 18 months of signing the PPA, with an expected commission date of March 2025. They must also provide five years of comprehensive operation and maintenance services.

The projects are expected to reduce ~714,000 tons of carbon emissions over its life.

SJVN must remit ₹2.02 million (~$24,438)/ MW as a performance bank guarantee for each of the projects.

They must also maintain the declared capacity utilization factor for these projects at 16.21% per annum.

In March this year, the Assam Cabinet gave an in-principle approval for setting up 620 MW of renewable energy projects under a joint venture between the Assam Power Generation Corporation and Oil India.

In October last year, SJVN Green Energy signed a memorandum of understanding with APDCL to invest ₹60 billion ($725.92 million) for developing 1,000 MW of floating solar projects in the state.

Recently, SJVN Green Energy also received a letter of intent from the Punjab State Power Corporation to develop 1,200 MW solar power projects.

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