SJVN inks two agreements to supply 1,200 MW solar power to Punjab

18 Aug 2023 , 11:53 AM

Punjab Chief Minister Bhagwant Mann announced here on Thursday 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 energy were recently inked by Satluj Jal Vidyut Nigam.

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

The subsidiary of SJVN, SJVN Green Energy Limited (SGEL), suggested 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 claimed.

According to Mann, the final tariff 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 the prices have been set for 25 years, PSPCL will not be responsible for any transmission fees or losses.

The chief minister attacked past administrations, claiming that between 2007 and 2017, not a single power supply agreement had a price per unit below Rs 7.

According to Mann, Punjab would soon be the first state to put banking power policies into effect. ‘We are also going to implement the power banking policy soon,’ he continued.

The chief minister stated that PSPCL has released additional tenders to purchase 2,500 MW of solar electricity 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 will cost roughly Rs 545 crore.

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