Friday, June 24, 2022

SJVN receives LoI from BREDA for 200 MW grid-connected solar projects in Bihar

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  • SJVN said that it will supply power at a fixed tariff of Rs 3.11/kWh from the solar project
  • The PSU had emerged as the L1 bidder for the solar project in August 2021

New Delhi: State-run SJVN Ltd has said that it has received a Letter of Intent (LoI) from Bihar Renewable Energy Development Agency (BREDA) for 200 MW grid-connected solar projects in Bihar, for which the PSU had emerged as the lowest bidder (L1) in August 2021. In a regulatory filing to the stock exchanges on Friday, SJVN said that it will supply power at a fixed tariff of Rs 3.11/kWh from the solar project. 

“In continuation to our disclosure dated 14.08.2021 regarding emergence of the Company as the lowest bidder for 200MW grid connected solar Project in the state of Bihar, BREDA has accepted the bid submitted by the Company and issued a letter of Intent for supply of 200 MW power at the fixed quoted tariff of Rs 3.11/- per kWh for sale of solar power as per terms & conditions laid down in the RFP, PPA, Corrigendum and BERC final order on long term basis for 25 years,” said SJVN in the regulatory filing.

BREDA had tariff ceiling for solar project bidders

The tender, which was first floated by BREDA in June 2019, was modified and re-issued several times. In the first bidding process, a solar tariff of Rs 3.45/kWh was discovered. However, the tariff was rejected by the State Electricity Regulatory Commission (SERC), who said that the tariff was on the higher side and recommended that it be renegotiated in the range of Rs 3.05/kWh to Rs 3.15/kWh. The SERC had also said that in case bidders and BREDA are unable to arrive at a renegotiated tariff in the said range, then the bid be cancelled and BREDA retender the solar projects.

SJVN to spend Rs 1,000 cr on 200 MW solar projects

According to SJVN, the tentative cost of construction, development of the 200 MW solar projects won from BREDA is Rs 1,000 crore. It is expected to generate 420.48 MU in the first year and the project cumulative energy generation over a period of 25 years would be about 10,512 MU. The PPA shall be signed between BREDA and SJVN for 25 years.

These projects will assist SJVN in achieving its ambitious shared vision of 5,000 MW by 2023, 25,000 MW by 2030 and 50,000 MW by 2040 and simultaneously contribute towards RE capacity addition target of 500 GW by 2030 set by the Central government, said SJVN. 

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