Indian public sector undertaking SJVN Limited has submitted a Letter of Intent to construct 10,000 MW of solar power projects in the state of Rajasthan over the next five years. The Government of Rajasthan dutifully recognised the Letter of Intent and pledged its full cooperation. The land banks will be allocated by Rajasthan Renewable Energy Corporation Limited. An investment of Rs 500 billion has been estimated for the development of these projects.
Commercial production will begin in stages, with the electricity generated being distributed to the beneficiaries through the nearest substations. Power Purchase Agreements for the generated energy will be signed through market-based competitive tariff opportunities. Furthermore, these projects will help SJVN achieve its shared goal of 5 GW by 2023, 25 GW by 2030, and 50 GW by 2040.
In November 2021, SJVN Limited and PTC India Limited signed an MoU to collaborate on the development of products for supplying round-the-clock power. As per the company’s statement, SJVN and PTC would collaborate to develop products for the delivery of renewable energy from SJVN’s projects combined with available market capacity for the supply of RTC power to beneficiaries.
REGlobal’s Views: Indian public sector companies like SJVN have started massive procurement of solar owing to its attractive cost economics. This trend is likely to continue with favorable government policies and the dropping costs of solar power.