In a significant stride towards India’s ambitious clean energy targets, ENGIE, a global leader in low-carbon energy solutions, has commenced the construction of a 400 MW solar photovoltaic (PV) project in Gujarat. The project was awarded to ENGIE by Gujarat Urja Vikas Nigam (GUVNL) as part of the 750 MW GUVNL Phase (XVI) auction process, with an estimated investment of approximately $200 million.
The French multinational secured its position as a favored bidder through a 25-year Power Purchase Agreement (PPA) signed with GUVNL. The project is anticipated to generate an impressive 907 gigawatt-hours of electricity annually, contributing significantly to India’s renewable energy capacity while mitigating approximately 7,74,112 tons of carbon emissions each year.
This latest venture marks ENGIE’s third renewable energy project in Gujarat, following the successful commissioning of a 200 MW solar project in Raghanesda in August 2021 and a 29.9 MW wind project in Tithva in 2019. With the new solar project in the construction phase, the Final Investment Decision (FID) has already been made, and the project is expected to be operational by the second quarter of 2024.
Amit Jain, Managing Director of ENGIE India, expressed optimism about the company’s future milestones, stating, “This award is a testament to ENGIE’s commitment to supporting India with its plan for energy transition and achieving its 500 GW clean energy goals by 2030. The transition towards sustainable energy sources is a crucial prerequisite for bringing about lasting change in consumption patterns, and ENGIE has emerged as a dynamic player in this field.”
The successful FID decision is a crucial milestone in the project development lifecycle, indicating the commitment of the project sponsor or investor to allocate funds to the initiative. ENGIE’s accomplishment in Gujarat is part of its broader strategy to accelerate the development of its renewable energy portfolio globally, with a target of adding 4 GW of capacity per year by 2025 and reaching a total installed capacity of 50 GW.
ENGIE also envisions further expansion of its energy storage capabilities and aims to provide innovative energy solutions to customers in India. The company is committed to playing a leading role in India’s energy transition by collaborating with local partners, stakeholders, and government entities to create an enabling environment for the growth of renewable energy in the country.
