Hydroelectric power generation company SJVN has announced an agreement with the New Delhi Municipal Council (NDMC) to sell 150 MW of solar power from SJVN projects that it plans to bid and develop under the Central Public Sector Undertaking (CPSU) Scheme.
In accordance, NDMC will purchase this solar power at a rate of Rs. 2.44/kWh tariff for 25 years if SJVN develops the capacity under the CPSU scheme. Consequently, SJVN is planning to bid for 1 GW out of 5 GW grid-connected solar capacity tendered by the Indian Renewable Energy Development Agency Ltd (IREDA) under the third tranche of CPSU scheme Phase II.
All state-owned power generators are expected to develop this capacity on a build-own-operate basis, i.e. either for self utilization or to be used by government bodies. These capacities should be developed by using domestic cells and PV modules. The solar-generated electricity can be supplied to the recipient directly or through DISCOMs on mutually agreed charges.
The government producers are provided a viability gap funding (VGF) to meet the cost difference between domestic and imported solar cells and modules under the CPSU scheme.
SJVN has agreed on terms with the NDMC in a pred-bid agreement to sell power from its solar projects.