SJVN Stock Up 8% After Landing 500 MW Solar Project

14 Mar 2024 , 09:11 PM

A Day after SJVN Green Energy Limited (SGEL), the company’s renewables division, got the Letter of Intent (LOI) for the 500 MW Solar Project from Gujarat Urja Vikas Nigam Limited (GUVNL), shares of SJVN shot up almost 8% on March 14.

₹2,700 Crore is the estimated cost of development and construction for this project. The project will be developed at Khavda’s GIPCL Solar Park.

Prior to this, on January 25, 2024, GUVNL conducted tariff-based competitive bidding, which resulted in SJVN Green Energy Limited winning the 500 MW (100 MW + 400 MW Green Shoe) project. The tariff was ₹2.54 / Unit on a Build Own and Operate (BOO) basis on e-RA.

SJVN shares closed 16.45% from the previous close on the National Stock Exchange (NSE), closing at ₹117.85. The PSU stock has produced multibagger gains of 243% during the past year.

The SJVN announcement states that GUVNL will carry out the power purchase agreement (PPA) as soon as the Gujarat Electricity Regulatory Commission (GERC) approves the rate. The project will subsequently be put into service within 18 months of the agreement’s signing, or by November 2025.

In the first year following commissioning, SJVN is expected to generate a total of 1271.07 million units with this project. Over the course of 25 years, a cumulative energy of 29,245.4 million units will be generated.

When this project is put into service, it should lower carbon emissions by 1.43 million tonnes, which will help the Government of India achieve its goal of reducing carbon emissions. SJVN stated in a regulatory filing that “the company is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50000 MW by 2040.”

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

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