"Gujarat Secures Solar Power Deal with NLC at ₹2.70 per kWhr"

Gujarat's state-owned electricity utility, GUVNL, has inked a landmark 25-year agreement with NLC India Green Energy Ltd (NIGEL) to procure electricity from its 600-MW solar plant at a competitive rate of ₹2.705 per kWhr.

NIGEL, a subsidiary of the renowned lignite mining and power generation entity NLC India Ltd, emerged victorious in securing two significant solar power projects through open tenders - a 600 MW project in Gujarat and an 810 MW project in Rajasthan.

The power-purchase agreement (PPA) between GUVNL and NIGEL encompasses the 600-MW solar project situated at Khavda solar park in Bhuj district, Gujarat, with an expected commissioning date set for June 2025.

According to a press release from NLC India, the Khavda project anticipates generating a substantial 1,577.88 million kWhr of electricity annually, equivalent to 2.63 million units per MW. At the agreed tariff of ₹2.705, this translates to an estimated revenue of ₹427 crore.

An official from NIGEL highlighted the project's potential for high power generation, attributing it to the utilization of bifacial modules with a high DC-to-AC conversion ratio and favorable solar irradiation conditions at Khavda.

Similar advantages are expected for the 810-MW solar plant in Rajasthan, where the tariff stands at ₹2.64 per kWhr, promising an annual revenue of ₹560 crore.

Upon completion of both projects, NIGEL anticipates achieving a significant milestone, transforming into a ₹1,000-crore company. Looking ahead, NIGEL aims to bolster its renewable energy portfolio to 6,000 MW by 2030.

To support these ambitious endeavors, NIGEL has allocated substantial investments of ₹4,000 crore for the Gujarat project and ₹4,800 crore for the Rajasthan project, as revealed by NLC India's Chairman and Managing Director, Prasanna Kumar Motupalli, in a recent interaction with BusinessLine.

HBL