NIGEL Signed Agreement with GUVNL for 600 MW Solar Power Project

Utkarsh Classes Last Updated 07-03-2024

NIGEL Signed Agreement with GUVNL for 600 MW Solar Power Project

Agreements and MoU 3 min read

NLC India Limited (NLCIL) has established a new subsidiary named NLC India Green Energy Limited (NIGEL) with the sole purpose of carrying out future Renewable Energy Projects.

NIGEL has recently signed a Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 600 MW Solar Power Project. This project is a significant step towards NLCIL's commitment to renewable energy and will help the company to leverage its expertise in the field.

About the agreement

NLCIL has won a tender to develop a 600 MW Solar Power Project in the GSECL Khavda Solar Park through a competitive bidding process.
In line with its policy of developing renewable energy projects through its wholly owned subsidiary (WoS), NIGEL has been entrusted with the project development.
As a first step, NIGEL has signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for the proposed project, which will be located at Khavda Solar Park, Bhuj District, Gujarat.
Under the PPA, the entire power generated from the project will be procured by GUVNL at a tariff of Rs. 2.705/kWhr. The project is estimated to produce 1,577.88 million units of electricity per year, resulting in a total of 39.447 billion units generated during its lifetime.Furthermore, the project is estimated to offset around 35.5 million metric tons of carbon dioxide emissions during its entire life.

The Khavda Solar Park will host NLCIL's largest solar project till date, with a capacity of 600 MW.

About NLCIL

The company was incorporated on November 14, 1956, and is called NLCIL. It is a Navratna Government of India Enterprise, which operates under the administrative control of the Ministry of Coal.
NLCIL is responsible for operating four Lignite-based pit-head Thermal Power Stations with a total capacity of 3390 Mega Watt (MW) located at Neyveli, as well as one 250 MW Lignite-based Thermal Power Station (BTPS) situated at Barsingsar, Rajasthan.
In addition, NLC Tamilnadu Power Limited (NTPL), a joint venture between NLCIL and TANGEDCO, operates a 1000 MW Coal-based Thermal Power Station in Thoothukudi, Tamil Nadu.