SJVN secures offtaker for 600 MW of solar capacity in India

A unit of Indian power producer SJVN Ltd (BOM:533206) has signed 25-year offtake agreements with domestic Rajasthan Urja Vikas and IT Services Limited (RUVITL) for the procurement of a total of 600 MW of solar power from two projects developed in the country.

SJVN Green Energy Limited and RUVITL have sealed a power usage agreement (PUA) for 500 MW from the Bikaner Solar Power Project and a power purchase agreement (PPA) for 100 MW from the Rajasthan Solar Power Project, according to a statement published on Sunday.

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RUVITL is joining a list of offtakers attracted for the 1-GW Bikaner plant that already includes Jammu & Kashmir Power Corporation Limited (JKPCL) and Uttarakhand Power Corporation Limited (UPCL). With the latest agreement, SJVN has now contracted the entire output of the facility.

The PPA, in turn, concerns an INR-5.5-billion (USD 66m/EUR 61m) project that SGEL won in an auction launched last year. The site will span more than 387 acres of land owned by Sambhar Salts Limited at Nawa, Rajasthan under a 28-year lease agreement. It will be realised on a build-own-operate (BOO) basis. Once operational, the facility will produce about 252 GWh of clean electricity per year.

The PUA was agreed upon at a tariff of INR 2.57 per kWh, while the PPA was signed at INR 2.62, the Sunday statement said further.

(INR 10 = USD 0.121/EUR 0.111)