SJVN signs power purchase agreement for 200 MW wind project; stock rises 2%

Shares of SJVN, formerly known as Satluj Jal Vidyut Nigam jumped more than 2 percent in trade on November 17 on signing of a power purchase agreement with Solar Energy Corporation of India. At 11:21 am the SJVN stock was trading at Rs 76.24 on NSE.

SJVN Limited, a government-owned hydroelectric power generation and transmission company, on November 16 said it has signed a Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) for a 200-MW grid connected wind power project, at an estimated cost of Rs 1,400 crore.

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The project is expected to generate 482 million units in the first year following commissioning, including a total projected energy generation of 12,050 million units during a 25-year period, SJVN said in a press release. The project will be completed by November 2025, that is, within 24 months of the effective date of the PPA signing.

SJVN Green Energy Limited (SGEL), the company’s wholly-owned subsidiary, had participated in SECI’s tariff-based competitive bidding procedure for the selection of wind power developers for setting up 1,200 MW grid-connected wind power projects anywhere in India. In the Open Competitive Tariff bidding procedure, SGEL won 200 MW at a tariff of Rs 3.24 per unit on a Build Own and Operate (BOO) basis.

Also Read: SJVN signs agreement for 200-MW wind project with SECI

SGEL will create the 200-MW wind project somewhere in India under an EPC contract. With the addition of this project, the Company’s wind portfolio now totals 497.6 MW. SGEL also signed a Memorandum of Understanding (MoU) with M/s Ocean Sun, Norway in October for collaboration in the field of new technologies in the Green & Clean Energy Sector.

In addition, SGEL got a Letter of Award (LOA) from Rajasthan Urja Vikas Nigam (RUVNL) for the building of a 100 MW solar power project at a tariff of Rs 2.62 per unit. The solar project will be constructed, owned, and operated (BOO).

SJVN Stock performance

The SJVN stock has given a return of 103 percent over the last six months. The benchmark Nifty50 index has given a return of 8.71 percent over same duration.

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