Satluj Jal Vidyut Nigam Ltd. (SJVN), NTPC Renewable Energy Ltd. (NTPC-REL), and NHPC Ltd. have been issued Letters of Award (LoAs) by Gujarat Urja Vikas Nigam Ltd.’s (GUVNL) to develop a total of 600 MW solar power capacity in Khavda, Gujarat.
GUVNL’s Auction Winners to Develop Solar Power Capacity in Khavda
Winners for GUVNL’s auction were selected through Tariff Based Competitive Bidding (TBCB) to develop the aforementioned solar capacity in Gujarat’s Khavda solar park. As per the results of the auction, NHPC, SJVN, and NTPC-REL, will develop grid-connected solar projects on a Build-Own-Operate (BOO) basis to supply power to GUVNL.
Each of the three successful bidders selected by GUVNL has won an equal share, that is 200 MW, of the total auctioned solar power capacity to be developed.
NHPC and SJVN had secured their quoted capacities at tariff rates of Rs. 2.73 per KWh and Rs. 2.88 per KWh, respectively. NTPC-REL had quoted the highest tariff out of the bidders, which was Rs. 2.89 per KWh of the solar power to be produced. Consequently, even though NTPC-REL had bid for 400 MW of the total solar capacity at the auction, it was awarded only 200 MW.
GUVNL will sign Power Purchase Agreements (PPA) with the aforementioned successful bidders for 25 years from the date of commissioning of these projects.
SJVN Estimates Rs. 1,200 Cr. as Cost of Development of its Solar Project
In a press release dated 3rd May 2023, SJVN mentioned Rs. 1,200 crore as the estimated cost of development of its solar project in Khavda. SJVN further stated that its solar project will generate approximately 505 MU (Million Units) of electricity for the first year and 11,756 MU cumulatively during its lifespan of 25 years.
Major Power Companies Involved in Building 30 GW Renewable Energy Park in Khavda
Khavda Renewable Energy Park is being developed by a number of companies such as NTPC, Adani Green Energy, and Solar Energy Corporation of India. This upcoming park is expected to be fully operational by 2026 and have a total capacity of about 30,000 MW comprising both solar and wind power components.
Earlier in October 2022, Sterling and Wilson had secured a Balance of System (BoS) contract from NTPC-REL in Khavda solar park.