State-run Satluj Jal Vidyut Nigam has signed a letter of intent (LoI) with the Rajasthan government to develop 10,000 megawatt (MW) of solar power projects in the state in the next five years. A memorandum of understanding (MoU) on the same will be inked shortly, and the investment is estimated at ₹50,000 crore.

The power producer signed the LoI on Tuesday. The acceptance letter by the Rajasthan government was exchanged in the presence of Chief Minister Ashok Gehlot by SJVN CMD N L Sharma and Rajasthan Renewable Energy Corporation (RRECL) CMD Subodh Agarwal, SJVN tweeted.

“A MoU in this regard will be signed shortly. SJVN’s intent is to establish 10,000 MW renewable power projects/parks on the land banks to be allocated by RRECL. Estimated investment of ₹50,000 crore is proposed by SJVN for developing these projects,” Sharma said.

The commercial production will commence in a phased manner and the power generated will be transmitted through nearest sub-Stations. The power purchase agreement (PPAs) for generated energy will be signed through competitive tariff-based opportunities available in the market, he added.

“Driven by the commitment of the Government of India to achieve 500 gigawatt (GW) of installed capacity from non-fossil fuel sources by 2030, SJVN has re-engineered its business model and has given a major thrust to its renewable energy portfolio in a big way,” Sharma said.

At present, SJVN has a total installed capacity of 2,016.5 MW, which includes 2 hydro power plants of 1,912 MW and four renewable power plants of 104.5 MW (Two solar plantw of 6.9 MW and 2 wind plants of 97.6 MW).

The PSU also has 2,550 MW of solar projects under execution in various locations, which are expected to be commissioned by 2023.

The company has also set a vision to achieve 5,000 MW by 2023, 25,000 MW by 2030 and 50,000 MW installed capacity by 2040.

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