SJVN, the energy company, witnessed an impressive 11% surge in its shares on March 14th, following an announcement from its renewable arm, SJVN Green Energy Limited (SGEL). SGEL secured a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for a substantial 500MW Solar Project.
The project, slated to be developed at GIPCL Solar Park at Khavda, comes with an estimated construction and development cost of Rs 2,700 crore.
Notably, SGEL had previously won the bid for this project, totaling 500MW, through tariff-based competitive bidding conducted by GUVNL on January 25, 2024. The project was secured at a tariff rate of Rs 2.54 per Unit on Build Own and Operate (BOO) basis.
As a result of this positive development, SJVN shares surged to Rs 108.40 on the National Stock Exchange (NSE), marking a 11% increase from the previous close. Over the past year, SJVN’s stock has delivered remarkable returns, amounting to a multibagger growth of 243%.
According to a recent release by SJVN, the execution of a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) hinges on the adoption of tariff rates by the Gujarat Electricity Regulatory Commission (GERC). Once this crucial step is completed, the project is slated for commissioning within 18 months, setting a target completion date by November 2025.
The project’s potential impact is substantial, with SJVN estimating the generation of approximately 1,271.07 million units of energy in the first year post-commissioning. Over a span of 25 years, this figure is projected to reach an impressive cumulative energy output of 29,245.4 million units.
More than just an energy producer, SJVN’s solar project is poised to play a significant role in environmental stewardship. The commissioning of the project is anticipated to result in the reduction of approximately 1.43 million tonnes of carbon emissions, aligning with the Government of India’s mission to mitigate carbon footprints.
In a regulatory filing, SJVN underscored its commitment to its ambitious vision of achieving 25,000MW of installed capacity by 2030 and further expanding to 50,000MW by 2040. This strategic roadmap is in perfect alignment with the Government of India’s target of deriving 50% of the country’s energy from non-fossil fuel sources by 2030.
The company’s proactive stance in advancing renewable energy projects not only contributes to India’s sustainable energy transition but also underscores its dedication to environmental responsibility and long-term energy security. As SJVN forges ahead with its renewable energy initiatives, it continues to be a driving force in shaping a greener and more sustainable future for the nation.
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