New Delhi: Eying a major share in the Green Energy, NLC India Limited has incorporated a wholly owned subsidiary NLC India Green Energy Limited (NIGEL) to carry out future Renewable Energy Projects and signed a power purchase agreement with Gujarat Urja Vikas Nigam Limited for 600 MW Solar Power Plant.
The subsidiary will focus specifically on Renewable Energy projects and thus leveraging the expertise to its benefits. NLCIL has won 600 MW Solar Power Project in the Gujarat State Electricity Corporate (GSECL) Khavda Solar Park tender floated by Gujarat Urja Vikas Nigam Limited (UVNL) through competitive bidding process, company said in a press release.
On the occasion, Chairman, NIGEL Shri. Prasanna Kumar Motupalli stated that, 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.
In line with the policy of developing RE projects under the green energy wholly owned subsidiary, the project development has been vested with NIGEL. As a first initiative, NIGEL has signed the Power Purchase Agreement with GUVNL for the proposed 600 MW Solar Power Project at Khavda Solar Park, Bhuj District, Gujarat.
The entire power from the project will be procured by GUVNL, the PPA tariff for the electricity from the project is Rs. 2.705/kWhr. Generation to the tune of 1,577.88 MU (Million Unit) of electricity every year with a cumulative electricity generation of 39.447 BU (Billion Unit) in its lifetime.
The project is set to offset approximately 35.5 Million Metric Tons of Carbon dioxide emissions during its entire life. PPA was signed by the Chief Executive Officer of NIGEL in the presence of Chairman, NIGEL Director and CFO, NIGEL with GM (Renewables), GUNVL at Vadodara.
By securing additional capacity in the Green shoe option, the project economics have been improved because of scales, Motupalli further added. The proposed 600 MW Solar Power Project in Khavda Solar Park will be the single largest Solar project developed by NLCIL as on date.
