TFP Bureau, New Delhi, March 06, 2024: NLC India Limited (NLCIL) has taken a significant step towards renewable energy initiatives by establishing a wholly owned subsidiary, NLC India Green Energy Limited (NIGEL), dedicated to future renewable energy projects.
In a competitive bidding process, NLCIL secured the tender for a 600 MW Solar Power Project at the GSECL Khavda Solar Park, facilitated by Gujarat Urja Vikas Nigam Limited (GUVNL). Tasked with project development under the subsidiary, NIGEL swiftly moved to formalize the Power Purchase Agreement (PPA) with GUVNL for the proposed solar venture in Khavda Solar Park, 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 project’s anticipated annual electricity generation stands at 1,577.88 MU, with a cumulative output of 39.447 BU over its lifespan. Notably, the project is poised to mitigate approximately 35.5 million metric tons of carbon dioxide emissions throughout its operational tenure.
The PPA signing ceremony, held in Vadodara, witnessed the participation of key officials including the Chief Executive Officer and Chairman of NIGEL, alongside representatives from GUVNL. Chairman of NIGEL, Shri. Prasanna Kumar Motupalli, highlighted the project’s strategic advantage of being situated within a Solar Park, equipped with essential infrastructure and robust payment security mechanisms. He also noted the project’s enhanced economics through the acquisition of additional capacity under the Green shoe option.
This venture marks a milestone for NLCIL, as the proposed 600 MW Solar Power Project in Khavda Solar Park stands to become the largest solar project under its portfolio to date.
