SJVN surges 8% on bagging LoI for 500MW solar project from GUVNL

Shares of SJVN surged around 8 percent on March 14, a day after the company’s renewable arm SJVN Green Energy Limited (SGEL) received the Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for 500 MW Solar Project.

The tentative cost of construction and development of this project is R 2,700 crore. The project is to be developed at GIPCL Solar Park at Khavda.

SJVN Green Energy Limited, has earlier bagged the 500 MW (100 MW + 400 MW Green Shoe) project through tariff-based competitive bidding at a tariff of Rs 2.54 /Unit on Build Own and Operate (BOO) basis on e-RA was conducted on 25.01.2024 by GUVNL.

At 10:18 am, SJVN shares were trading at Rs 108.40 on the National Stock Exchange (NSE), up 7 percent from the previous close. In the last one year, the PSU stock has delivered multibagger returns of 243 percent.

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According to the SJVN release, GUVNL will execute the power purchase agreement (PPA) once GERC (Gujarat Electricity Regulatory Commission) adopts the tariff, and the project will then be commissioned within a period of 18 months from when this agreement is signed, which means by November 2025.

Through this project, SJVN will likely be able to generate a total of 1271.07 million units in the first year post-commissioning, and by 25 years, a cumulative energy of 29,245.4 million units will be generated.

“Commissioning of this project is expected to reduce 1.43 million tonnes of carbon emission and would contribute in GoI mission of reduction in carbon emission. The company is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50000 MW by 2040,” SJVN said in a regulatory filing.

“This shared vision has been formulated in sync with the commitment of the Government of India of generating 50 percent energy from non-fossil fuel-based energy resources by 2030,” the company added.

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