Satluj Jal Vidyut Nigam (SJVN) has revealed plans to develop 10GW of solar power projects in Rajasthan, India over the next five years.

The solar projects are estimated to require an investment of INR500bn ($6.67bn).

The Indian power generation and transmission company has submitted a letter of intent (LOI) in this connection to the Rajasthan state government.

SJVN plans to set up solar power projects/parks on the land banks to be assigned by Rajasthan Renewable Energy.

According to SJVN, the commercial production of the projects will begin in a phased manner. The electricity produced by the facilities will be transmitted to the beneficiaries via the nearest substations.

The company plans to sign power purchase agreements for the produced energy through competitive tariff-based opportunities present in the market.

It stated: “SJVN has proposed to develop Solar Power Projects in Rajasthan as the state has largest solar power potential in the country. It receives the highest solar radiation (5.72 Kwh/m2/day) and also has the highest number of more than 325 clear sunny days in a year.

“All these factors work in our favour of developing the Projects.”

The company further stated that the solar power projects in Rajasthan will help it reach its goals of 5GW by 2023, 25GW by 2030, and 50GW by 2040.

Besides, the projects will contribute simultaneously towards the Indian government’s renewable capacity addition target of 500GW by the end of this decade.

SJVN is a joint venture between the Indian and the Himachal Pradesh governments. Founded in 1988, the public sector undertaking is mainly engaged in hydroelectric power generation and transmission.

In September last year, the company received 1GW solar power project contract in the bidding organised by Indian Renewable Energy Development Agency (IREDA).