SJVN wins auction for 200 MW solar projects in Bihar

SJVN Limited, a joint venture between the union government and the Himachal Pradesh government, has claimed a 200 megawatts (MW) grid-connected solar photovoltaic project in Bihar in an auction held recently by Bihar Renewable Energy Development Agency (BREDA) through the open competitive tariff bidding process. The 200 MW of solar capacity won by SJVN is part of the 250 MW tender issued by BREDA.

At a quoted tariff of Rs 3.11/kilowatt-hour (kWh) for the 200 MW project, SJVN will build, own, and operate the project. BREDA and SJVN will sign the purchase power agreement for 25 years.

Three other bidders had also participated in the auction. According to Nand Lal Sharma, chairman & managing director of SJVN, the tentative cost of the construction and development of the project will be Rs10 billion.

The project is expected to generate 420.48 million units (MU) of solar energy in the first year and generate about 10,512 MU of solar over the next 25 years.

The tender has been reissued and modified more than once since it was first floated in June 2019. In the instant bidding process, a tariff of Rs3.45/kWh was offered. But this tariff was not approved by the state regulator finding it to be on the higher side and recommended that the tariff be renegotiated in the range of Rs3.05/kWh to Rs 3.15/kWh. In May 2020, BREDA removed the tariff ceiling of Rs3.15/kWh and extended the bid submission deadline.

SJVN has a total installed power capacity of 2,016.5 MW, including two hydropower projects of 1,912 MW, two solar projects of 6.9 MW, and two wind projects of 97.6 MW. Earlier this year, SJVN won a 100 MW solar project in the Gujarat Urja Vikas Nigam Limited’s auction. It quoted a tariff of Rs2.64/kWh. SJVN also plans to participate in Indian Renewable Energy Development Agency’s auction for 5 GW of grid-connected solar projects in India under the Central Public Sector Undertaking program. SJVN has also pre-booked solar power sale of 150 MW at Rs2.44/kWh with New Delhi Municipal Corporation for 25 years.

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