SJVN Signs Power Purchase Agreement with BBMB for 18 MW Solar Project

Shimla, September 8th, 2023 –

In a significant development for the renewable energy sector, SJVN (Satluj Jal Vidyut Nigam Limited), a prominent CPSU under the Ministry of Power, has officially signed a Power Purchase Agreement (PPA) for an 18 MW solar power project with the Bhakra Beas Management Board (BBMB). The agreement was inked in the presence of Sh. Nand Lal Sharma, Chairman & Managing Director of SJVN, in Shimla today.

This noteworthy venture is being pursued through SJVN’s wholly-owned subsidiary, SJVN Green Energy Limited (SGEL), and will be executed on land parcels owned by BBMB, strategically located in the states of Himachal Pradesh and Punjab. The project has set an ambitious target of being commissioned by August 2024.

Sh. Nand Lal Sharma, while disclosing the details of this milestone project, shared, “The solar project will be developed within a swift 12-month timeline, operating under the Build Own and Operate (BOO) framework, entailing an investment of approximately Rs. 90 crores.”

What makes this project even more commendable is the competitive bidding process it underwent. Sh. Sharma highlighted that the project secured a favorable tariff rate of Rs. 2.63/- during an e-reverse auction orchestrated by the Punjab Energy Development Agency. In its inaugural year, the solar project is projected to generate an impressive 39.42 million units of energy, with cumulative energy production estimated to reach a staggering 917 million units over a 25-year period. The Power Purchase Agreement with BBMB spans 25 years, promising a sustainable and consistent supply of clean energy.

In terms of environmental impact, the commissioning of this solar project is expected to result in a substantial reduction of 44,923 tons of carbon emissions, reinforcing SJVN’s commitment to green energy and environmental sustainability.

The pivotal Power Purchase Agreement was formally executed by Sh. Ajay Singh, CEO of SGEL, and Sh. Ajay Sharma, Special Secretary of BBMB, underscoring the collaborative spirit and determination behind this endeavor. Several prominent figures from SJVN and BBMB, including Smt. Geeta Kapur, Director (Personnel) at SJVN, Sh. Akhileshwar Singh, Director (Finance) at SJVN, Sh. Sushil Sharma, Director (Electrical) at SJVN, Sh. A.S. Juneja, Member (P) at BBMB, Sh. J.S. Kahlon, FA & CAO at BBMB, and Sh. Surjeet Singh, Director (P&D) at BBMB, were also present at the signing ceremony, along with other senior officers from both organizations.

SJVN, as part of its forward-looking strategy, aims to establish over 10,000 MW of renewable energy capacity within the next three years. This initiative is in line with its shared vision of becoming a company boasting 25,000 MW of capacity by 2030 and reaching an impressive 50,000 MW by the year 2040, further cementing its commitment to India’s sustainable energy future.

The SJVN-BBMB solar project not only marks a significant step forward in India’s renewable energy sector but also highlights the growing importance of green energy in the country’s energy mix, contributing to a cleaner and more sustainable future.