NIGEL secures 600 MW solar project in Gujarat’s Khavda solar park

NLCIL subsidiary NIGEL signs PPA with GUVNL for its largest solar venture, emphasising sustainability and scale.

NLC India Limited (NLCIL) has established a wholly owned subsidiary, NLC India Green Energy Limited (NIGEL), dedicated to driving future Renewable Energy Projects. The subsidiary will focus exclusively on Renewable Energy endeavours, aiming to capitalise on expertise for optimal outcomes.

NLCIL successfully secured a 600 MW Solar Power Project tender within the GSECL Khavda Solar Park, initiated by GUVNL through a competitive bidding process. Aligning with the strategy of developing RE projects under the green energy subsidiary, NIGEL has been entrusted with project development responsibilities.

In its inaugural move, NIGEL has formalised a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for the aforementioned 600 MW Solar Power Project at Khavda Solar Park, situated in Bhuj District, Gujarat. GUVNL will procure the entire power output from the project at a PPA tariff of ₹ 2.705/kWhr. The projected annual electricity generation stands at 1,577.88 MU (Million Units), with a cumulative lifetime generation estimated at 39.447 BU (Billion Units). Remarkably, the project aims to mitigate approximately 35.5 Million Metric Tons of Carbon dioxide emissions throughout its operational lifespan.

The PPA signing ceremony was attended by the Chief Executive Officer of NIGEL, alongside the Chairman, Director, and CFO of NIGEL, alongside the GM (Renewables) from GUVNL, held in Vadodara. Chairman of NIGEL, Prasanna Kumar Motupalli, emphasised the project’s advantageous positioning within a Solar Park, benefiting from readily available essential infrastructure and secure payment arrangements for power sales. He further noted the enhancement of project economics through securing additional capacity via the Green shoe option, leveraging economies of scale.

The proposed 600 MW Solar Power Project in Khavda Solar Park stands as the largest Solar project developed by NLCIL to date, signifying a significant milestone in its renewable energy endeavors.