The Sutlej Jal Vidyut Nigam (SJVN) has announced has signed a memorandum of understanding (MOU) with other two state owned companies – engineering firm Bharat Heavy Electricals Limited (BHEL) and Railway Energy Management Company (REMC) Limited for the development of renewable energy projects.
SJVN chairman and managing director (CMD), Nand Lal Sharma in an official statement said that renewable energy projects will be developed for the Indian Railways.
The statement noted that the signing of the MoU would usher in a new era of more efficient consumption of power in the Indian Railways, while also leading to more competitive tariffs for the overall benefit of consumers.
The CMD also apprised that all three parties to the MoU are expected to work together to leverage their core strength in project development for the establishment of renewable energy projects for use by Indian Railways.
The MOU aims to push different energy and related PSU’s to tap into each other’s competencies to build renewable power capacities.
The MoU will have two direct impacts. On one hand, it will help SJVN to achieve its renewable energy target. On the other hand, it will also expedite the quest of the Indian Railways to become a net-zero carbon emitter by the end of this decade.
Currently, SJVN has twelve solar power projects of 3,065 megawatts (MW) capacity under different stages of development. The total portfolio of the company stands at more than 16,900 MW in nine Indian states and in neighbouring countries of Nepal and Bhutan.
The official statement reads, “This gigantic portfolio expansion has led to SJVN’s new shared vision – 5,000 MW by 2023, 25,000 MW by 2030 and 50,000 MW installed capacity by 2040. The company is striding ahead to achieve its shared vision and to be a partner in the sustainable development of the nation.”
Recently, SJVN has also declared that it has incorporated a new subsidiary – SJVN Green Energy Ltd (SGEL) – specifically for the execution of renewable projects. The new company will work in the verticals of power generation from renewable sources such as solar parks, wind & hybrid projects, battery energy storage system, assets creation in wave, biomass, small hydro and green hydrogen-based business ventures.