Chennai (Tamil Nadu) [India], March 6 : NLC India Green Energy Limited (NIGEL), the green arm of NLC India Limited (NLCIL), has marked a significant milestone by signing a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 600 MW Solar Power Project.
According to a press release, established as a wholly owned subsidiary of NLC India Limited, NIGEL is dedicated to advancing renewable energy initiatives.
Leveraging its expertise in renewable energy projects, NIGEL focuses specifically on developing green energy projects to contribute to sustainable development goals.
NLCIL secured the 600 MW Solar Power Project in the Gujarat State Electricity Corporation Limited (GSECL) Khavda Solar Park tender, initiated by GUVNL through a competitive bidding process. In line with its commitment to renewable energy development, NLCIL has entrusted the project development to NIGEL.
The PPA signed with Gujarat Urja Vikas Nigam Limited (GUVNL) encompasses the proposed 600 MW Solar Power Project at Khavda Solar Park, situated in Bhuj District, Gujarat.
Under the agreement, GUVNL will procure the entire power generated by the project at a tariff of Rs 2.705/kWhr.
The solar project is projected to generate approximately 1,577.88 million units (MU) of electricity annually, contributing to a cumulative electricity generation of 39.447 billion units (BU) over its lifetime.
Moreover, the project is expected to offset approximately 35.5 million metric tons of carbon dioxide emissions during its operational lifespan.
The signing of the PPA took place at Vadodara, with Prasanna Kumar Motupalli, Chief Executive Officer of NIGEL.
This project is set to be the largest solar project developed by NLCIL to date, reinforcing the company's commitment to sustainable energy solutions.
Commenting on the occasion, Chairman of NIGEL, Prasanna Kumar Motupalli, highlighted the strategic advantages of the project, emphasizing its establishment within a Solar Park with readily available infrastructure and secure payment mechanisms.
Motupalli said, "this project has the benefit of being established in a Solar Park with all readily available necessary infrastructure and with payment security for the power sold. By securing additional capacity in the Green shoe option, the project economics have been improved because of scales."
Additionally, he noted that securing additional capacity through the Green shoe option has enhanced the project's economics, paving the way for further sustainable growth.
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