SJVN signs two agreements to provide Punjab with 1,200 MW of solar power

Punjab Chief Minister Bhagwant Mann said that state-owned SJVN Ltd. has signed two agreements with Punjab State Power Corporation Ltd. (PSPCL) to provide 1,200 MW of solar power from its projects.

Two power purchase agreements (PPAs) for 1,200 MW of solar power were recently signed by Satluj Jal Vidyut Nigam.

PSPCL has issued tenders for the purchase of power from solar projects in Punjab and other regions of the nation.

The arm of SJVN, SJVN Green Energy Limited (SGEL), proposed charging Rs 2.53 per unit for the supply of 1,000 MW and Rs 2.75 per unit for an additional 200 MW.

"Earlier bidding was of Rs 2.59 per unit but it was negotiated and brought at Rs 2.53," he said.

According to Mann, the final rate for 200 MW was agreed upon at Rs 2.75 per unit instead of the bid's recommended rate of Rs 2.79 per unit. Mann added that the state government will save Rs 431 crore as a result of this negotiation.

Since rates have been set for 25 years, PSPCL will not be responsible for any transmission charges or losses.

The chief minister stated that PSPCL issued further tenders to purchase 2,500 MW of solar power in order to further promote sustainable energy and supply the most power possible to agricultural tube wells.

In Punjab, SJVN is already working on a 100 MW solar project that would cost around Rs 545 crore.

The 1,200 MW agreement, according to Mann, is the largest solar power purchase agreement in the nation.

Source: Media Reports