SJVN soars 11% on commissioning 75 MW solar power project in Uttar Pradesh

Shares of SJVN hit an over four-year high of Rs 36.55 as they soared 11 per cent on the BSE in Thursday’s intra-day trade on the back of heavy volumes after the company commissioned 75 MW solar power project in Uttar Pradesh (UP).

The stock of state-owned electric utilities company traded at its highest level since February 2018. It surpassed its previous high of Rs 33.95, which it touched on October 6, 2022. The stock was trading closer to its record high of Rs 40.15, hit on January 5, 2018.

At 03:22 PM, SJVN traded 10 per cent higher at Rs 36.25, as compared to 0.44 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter jumped an over eight-fold, with a combined around 31 million shares changing hands on the NSE and BSE.

“The company has started commissioning of its 75MW Solar Power Project located at Tehsil Kalpi, District Jalaun near Kanpur, Uttar Pradesh through its wholly owned subsidiary SJVN Green Energy Limited,” SJVN said in exchange filing. The entire 75 MW capacity is expected to be operational by the end of this month, on October 30, 2022.

SJVN said the project will generate 168.34 million units (MUs) in the first year, with a total energy output of 3919 MUs during a 25-year period. This will result in an annual revenue increase of about Rs 45.11 crore, improving both the top and bottom lines of the balance sheet. A 25-year Power Purchase Agreement (PPA) has been signed with Uttar Pradesh Power Corporation Limited (UPPCL), the company said.

SJVN further said that the company's renewable portfolio totals 4007.5 MW, with 179.5 MW operational, 1370 MW under construction, and 2458 MW in various phases of implementation. With the completion of this 75 MW Solar project, total operating capacity will rise from 2016.5 MW to 2091.5 MW.

The company's Shared Vision of 5000 MW by 2023, 25000 MW by 2030, and 50000 MW capacity by 2040 is in line with the Government of India's goal of achieving 50 per cent energy from non-fossil fuel sources by 2030.