State-owned hydropower producer Satluz Jal Vidyut Nigam Ltd (SJVN) has won 1 GW out of the 5 GW grid-connected solar capacity tendered under the Central Public Sector Undertaking (CPSU) Scheme Phase II. It won the project by quoting a viability gap funding (VGF) requirement of INR 44.72 lakh per MW.

The tender was floated by the Indian Renewable Energy Development Agency Ltd (IREDA) under the third tranche of the Scheme.

SJVN had submitted the bid to develop 1 GW and won the full quoted capacity with a viability gap funding (VGF) support of INR 44.72 lakh per MW.

The project construction and development cost is estimated at INR 5,500 crore. The project is expected to generate 2,365 million units (MU) of electricity in the first year and about 55,062 MU over 25 years. 

“These projects will assist SJVN in achieving its ambitious shared vision of 5,000 MW by 2023, 12,000 MW by 2030, and 25,000 MW by 2040 and simultaneously contribute towards RE capacity addition target of 175 GW by 2022 set by the Government of India,” read a statement by SJVN.

As per the tender document for 5 GW under CPSU Scheme Phase-II, State-owned power generators are required to develop this capacity on a build-own-operate basis—either for self-consumption or use by other government entities—using India-made cells and modules. The solar electricity can be supplied to the beneficiary either directly or via power distribution companies on mutually agreed charges.

Under the Scheme, government producers are provided VGF support to cover the cost difference between domestic and imported solar cells and modules.

The selection of the producer was made using the VGF amount as a bid parameter.  

New Delhi Municipal Corporation (NDMC) has already agreed to procure 150 MW of solar power from the projects that SJVN will develop under the CPSU Scheme.