SJVN’s solar project deal boosts stock to 52-week high

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SJVN’s share price rose 5% to a 52-week high of ₹68 in early trade on September 11, after its green energy arm signed a power purchase agreement with the Bhakra Beas Management Board (BBMB) to develop an 18 MW solar power project.

SJVN Green Energy will develop the project on BBMB’s land parcels in Himachal Pradesh and Punjab. It is scheduled to be commissioned by August 2024.

The project was secured through an open competitive bidding process at a tariff of ₹2.63 per unit in an e-reverse auction organized by the Punjab Energy Development Agency (PEDA).

The project is expected to generate 39.42 million units of energy in the first year of operation, and the cumulative energy generation over a period of 25 years would be about 917 million units.

SJVN plans to install over 10,000 MW of renewable energy capacity in three years, while working towards its goal of becoming a 25,000 MW company by 2030 and a 50,000 MW company by 2040.

India Ratings & Research has affirmed the company’s AA+ rating with a stable outlook.

In August, SJVN Green Energy received letters of award from the Assam Power Development Corporation Limited (APDCL) for three solar power projects of a total capacity of 320 MW.

These three solar power projects will be developed on a build-own-and-operate (BOO) basis and are expected to generate a cumulative 628 MUs in the first year. The cumulative energy generation over a period of 25 years would be about 14,591 MUs.

The strong performance of SJVN’s stock is a reflection of the growing investor interest in renewable energy companies. The company’s ambitious renewable energy plans and its strong financials are also factors that are driving the stock price higher.


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