New Delhi: In a move towards advancing its commitment to sustainable practices, NLC India Limited (NLCIL) has announced the incorporation of a wholly owned subsidiary, NLC India Green Energy Limited (NIGEL). The newly established subsidiary will exclusively focus on spearheading Renewable Energy (RE) projects, aiming to capitalize on the burgeoning opportunities in the clean energy sector.
NIGEL’s inaugural venture involves securing a significant triumph in the renewable energy landscape. NLCIL has successfully clinched the 600 MW Solar Power Project tender in the GSECL Khavda Solar Park, a tender floated by Gujarat Urja Vikas Nigam Limited (GUVNL) through a rigorous competitive bidding process. The development rights for this groundbreaking project have been entrusted to NIGEL, aligning with NLCIL’s strategy of channeling RE initiatives through dedicated wholly owned subsidiaries.
Marking a historic milestone, NIGEL has officially inked a Power Purchase Agreement (PPA) with GUVNL for the proposed 600 MW Solar Power Project situated in Khavda Solar Park, Bhuj District, Gujarat. The PPA outlines a tariff of Rs. 2.705/kWhr for the electricity generated by the project. The estimated annual electricity generation is set at an impressive 1,577.88 Million Units (MU), with a cumulative generation of 39.447 Billion Units (BU) over its lifetime. Moreover, the project is anticipated to offset approximately 35.5 Million Metric Tons of carbon dioxide emissions throughout its operational lifespan.
The signing ceremony for the PPA took place in Vadodara, witnessed by key figures, including the Chief Executive Officer of NIGEL, the Chairman of NIGEL, and the Chief Financial Officer of NIGEL, along with the General Manager (Renewables) from GUVNL.
Chairman of NIGEL, Shri. Prasanna Kumar Motupalli, emphasized the strategic advantages of the project. He highlighted the project’s location in a Solar Park, equipped with essential infrastructure and assured payment security for the power sold. The Chairman also noted that by securing additional capacity in the Green shoe option, the project’s economic viability has been enhanced, thanks to the economies of scale.
This ambitious 600 MW Solar Power Project in Khavda Solar Park marks a significant leap for NLCIL, standing as the largest solar project developed by the company to date. The endeavor underlines NLCIL’s unwavering commitment to contributing substantially to the renewable energy landscape and fostering a sustainable future.