Synopsis: SJVN Limited has signed long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) for supplying green electricity from three upcoming hydroelectric projects in Himachal Pradesh with a combined capacity of 658 MW. The agreements strengthen the company’s long-term revenue visibility and renewable energy portfolio.
Shares of SJVN Limited are likely to remain in focus after the company announced the signing of Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) for the supply of green power from three upcoming hydroelectric projects in Himachal Pradesh.
SJVN Limited has a total market capitalization of approximately Rs. 28,805.40 crore. The company’s shares were trading at around Rs. 73.28 apiece on the stock exchange, up 2.08 percent during the session. The stock has gained 0.98 percent over the last five trading sessions, while it has gained 0.51 percent over the last month. The stock touched a 52-week high of Rs. 101.48 and a 52-week low of Rs. 63.02.
SJVN signs PPAs for 658 MW of hydro capacity
According to the company’s press release, SJVN has entered into long-term Power Purchase Agreements with Gujarat Urja Vikas Nigam Limited (GUVNL) for the supply of electricity from three hydroelectric projects currently under development in Himachal Pradesh.
The agreements cover power generated from the 66 MW Dhaulasidh Hydro Electric Project, 210 MW Luhri Stage-I Hydro Electric Project, and the 382 MW Sunni Dam Hydro Electric Project, taking the total contracted capacity to 658 MW.
The PPAs were signed in Vadodara, Gujarat, by representatives of both SJVN and GUVNL in the presence of senior officials from the two organizations.
Why the agreements are important
Power Purchase Agreements are long-term contracts under which electricity generators sell power to distribution utilities at predetermined commercial terms. Such agreements provide developers with assured offtake, stable cash flows, and improved revenue visibility while also facilitating project financing.
For hydroelectric projects, securing PPAs before commissioning is particularly important as it reduces demand risk and ensures that generated power can be supplied immediately upon project completion.
Hydroelectric power remains one of India’s most reliable renewable energy sources, providing clean baseload electricity along with grid balancing capabilities that complement intermittent renewable sources such as solar and wind.
As India targets 500 GW of non-fossil fuel capacity by 2030, investments in hydroelectric generation are expected to play an important role in enhancing grid stability and supporting the country’s long-term energy transition.
The latest agreements further strengthen SJVN’s long-term power sale portfolio while reinforcing its position as a key contributor to India’s renewable energy expansion.
SJVN Limited is a Navratna Public Sector Enterprise engaged in electricity generation, primarily through hydroelectric power projects, while also expanding into solar, wind, and other renewable energy businesses. The company additionally provides consultancy services for hydroelectric projects and continues to expand its power generation portfolio across India.
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