By Srijan Naayak
SJVN Limited has recently garnered attention as its stock witnessed significant growth during the past year. As accessed on January 19, 2024, its stock recorded a 52-week high of 107.33 and a 52-week low of 30.39. On January 19, 2024, the stock closed at 105.52, which is a 247.21 per cent increase over the 52-week low. This impressive growth demands a detailed review of the organisation’s initiatives in the renewable energy space. Renewable Watch highlights SJVN’s portfolio, recent financial performance, key developments and future plans…
Portfolio
According to SJVN’s Annual Report 2022-23 and recent press releases, its total energy portfolio stands at approximately 55.81 GW capacity, of which 36.7 GW is under allotment, 9.4 GW is under survey and investigation (S&I), 3.19 GW is under pre-construction, 4.3 GW is under construction and 2.23 GW is operational. The company’s renewable energy portfolio is 25.66 GW, which includes 1.43 GW, 2.48 GW, 0.5 GW, and 21 GW is at the construction, pre-construction, S&I and allotment stages respectively. The under-construction portfolio comprises 1,558 MW hydropower, 1,320 MW thermal and 1,425 MW renewable energy projects. Of the total operational capacity, 1,972 MW is hydro and 254.5 MW is renewable energy. The operational renewable energy capacity includes three solar and two wind power projects. These include:
- A 5.6 MW project located at the Charanka Solar Park on 25.96 acres of land. It was commissioned in March 2017 and the PPA was with Gujarat Urja Vikas Nigam Limited (GUVNL).
- A 47.6 MW wind project at Khirwire and Kombhalne villages of Ahmednagar, Maharashtra. It comprises 56 wind energy generators (WEGs) having a rated capacity of 0.85 MW each. It was commissioned in May 2014.
- A 50 MW wind project, comprising 25 WEGs each of 2 MW capacity at Sadla, Gujarat, which became operational in April 2019. The PPA for the project was signed with GUVNL.
- A 75 MW solar park project at Parasan in Uttar Pradesh. The project was commissioned in November 2022. The PPA for the project was signed with UPPCL at a tariff of Rs 2.68 per unit.
- A 75 MW solar power project at Gurhah, which was commissioned in December 2023. It has been developed on 151.64 hectares of land at a cost of Rs 4.08 billion. The PPA for the project was signed with UPPCL.
Financial performance
According to the latest second quarter (Q2) financial report (consolidated results), SJVN’s total income increased by 3.82 per cent from Rs 9.16 billion in Q2 FY 2023 to Rs 9.51 billion in Q2 FY 24. During the same period, the total expenditure of SJVN increased by 2.84 per cent from Rs 3.87 billion to Rs 3.98 billion. Its finance, depreciation, amortisation and other expenses accounted for nearly 81 per cent of the increase in total expenditure. Meanwhile, in Q2 FY 2024, the company recorded a profit of Rs 5.5 billion before exceptional items. This includes net movement in regulatory deferral account balances and the share of net profit from joint ventures.
The company’s total income in the six months April 2023-September 2023 was Rs 16.9 billion, witnessing a decrease from the Rs 19.8 billion recorded during April 2022-September 2022. The total expenses also decreased from Rs 8.08 billion to Rs 7.6 billion during the same six-month period. Meanwhile, for the same period, the company’s profit before exceptional items and the net movement in regulatory deferral account balances, including share of net profit of joint ventures, sharply decreased by over 20.69 per cent from Rs 11.79 billion to Rs 9.35 billion.
According to SJVN’s Annual Report 2022-23, its total revenue increased by 13.4 per cent from Rs 29.09 billion in FY 2018-19 to Rs 32.99 billion in FY 2022-23.
SJVN generated 59.05 million units (MUs) of wind power in Q2 FY 2024 compared to 49.04 MUs in Q2 FY 2023. Meanwhile, the company’s solar power generation increased from 1.48 MUs in Q2 FY 2023 to 1.68 MUs in Q2 FY 2024. Additionally, the gross energy generated from hydropower projects decreased from 4,277.21 MUs in Q2 FY 2023 to 4,142.6 MUs in Q2 FY 2024.
Recent key developments
With respect to the awards won, in July 2023, SJVN received a letter of intent (LoI) for the implementation of 1.2 GW solar power projects from Punjab State Power Corporation Limited. It also received a letter of award (LoA) for the implementation of 320 MW grid-connected solar power in Assam by Assam Power Distribution Company Limited (APDCL) in August 2023. In the same month, it won 90 MW capacity by quoting a tariff of Rs 3.79 per kWh under Phase II of the 600 MW Omkareshwar floating solar power project. Additionally, in 2023 the company received an LoI for the implementation of a total of 18 MW grid-connected solar power projects. These projects will be spread across four locations, covering the jurisdictions of the Bhakra Beas Management Board in Punjab and Himachal Pradesh. SJVN received another LoA for a 100 MW solar power project from Rajasthan Urja Vikas Nigam Limited (RUVNL) in October 2023. During the same month, it also received an LoI from Jammu and Kashmir Power Corporation Limited and RUVNL to procure solar from the 1,000 MW Bikaner solar power project in Rajasthan.
In November 2023, the company awarded contracts for its 1.5 GW renewable energy with energy storage systems tender to seven firms. These include ACME Solar, Juniper Green Energy Private Limited, and Tata Power Company Limited with 250 MW, 200 MW and 200 MW at a tariff of Rs 4.38 per kWh, while ReNew Power, BluPine Energy Private Limited, Hero Solar, and O2 Power Private Limited won bids for 184 MW, 150 MW, 120 MW and 80 MW, respectively, at a tariff of Rs 4.39 per kWh.
In September and November 2023, SJVN invited bids for setting up 1.5 GW wind-solar hybrid power projects and 1.5 GW solar power projects respectively. In addition, it invited bids for the development of a 300 MW wind power projects, which it won under Solar Energy Corporation of India Limited’s 1.2 GW Tranche XIII and Tranche XIV auctions in November 2023.
Apart from the awards and biddings, in December 2023, SJVN commissioned the 60 MW Naitwar Mori hydro electric project in Uttarkashi, Uttarakhand, and the 75 MW Gurhah solar power project in Jalaun, Uttar Pradesh. In July 2023, the company signed a PPA for 200 MW solar and 100 MW wind capacities that it won under Maharashtra State Electricity Distribution Company Limited’s 500 MW grid-connected solar PV project (Phase VII) and 1,200 MW interstate transmission system-connected wind power project (Tranche XIII) respectively. In the same month, the Arunachal Pradesh government allotted five hydroelectric projects in Dibang Valley district of the state to the company. The projects are Amulni (420 MW), Emini (500 MW), Mihundon (400 MW), Attulni (680 MW) and Etalin (3,097 MW).
Future plans
SJVN plans to install a total capacity of 12 GW in the next two years as it progresses towards its vision of achieving 25 GW capacity by 2030 and 50 GW capacity by 2040. It also aims to add 1-1.5 GW of renewable capacity annually. Additionally, it has ambitious plans to enter emerging segments such as round-the-clock (RTC) power, green hydrogen and green ammonia. To this end, SJVN has signed MoUs with Oil and Natural Gas Corporation Limited and Sambhar Salts Limited for the joint development of renewable energy projects. These include offshore and onshore solar, wind, hybrid and RTC projects, along with plans to venture into new technologies such as green hydrogen and green ammonia. Taking into consideration its future plans, SJVN Limited has signed a joint venture agreement with Maharashtra State Power Generation Company Limited and APDCL to develop over 5 GW of renewable energy projects in Maharashtra and 1 GW in Assam.
With these robust plans, a substantial pipeline of projects, and a track record of strong operational performance, SJVN is poised to emerge as a leading PSU in the energy space.
