Shimla, Aug 17 (IANS): Public sector Satluj Jal Vidyut Nigam Ltd (SJVNL) on Monday announced it will commission a 100 MW facility in Gujarat's Dholera Solar Park at an outlay of Rs 450 crore.

Gujarat Urja Nigam Ltd had invited bids for 700 MW capacity. The SJVNL got 100 MW capacity at the rate of Rs 2.80 per unit on the build-own-and-operate basis.

SJVNL Chairman and Managing Director Nand Lal Sharma said the tentative cost of the project is Rs 450 crore. The project is expected to generate 244 million units in a year.

The power purchase agreement will be signed for 25 years.

Sharma said the solar park in the Dholera Special Investment Region is situated along the Gulf of Khambhat.

At the current rates, the solar power generation cost is at par with that of thermal power generation, he said.

Solar power tariff has been declining because of sharply declining prices of solar panels, better structuring of the project that reduces the risk for project developers and availability of finances at a competitive cost.

Sharma said the development of these parks will lead to realization of Prime Minister Narendra Modi's vision of providing 175 GW of power through renewable sources by 2022.

The SJVNL is implementing 13 hydro projects in Himachal Pradesh, Uttarakhand, Nepal and Bhutan.

In addition, the SJVNL is implementing the 1,320 MW Buxar Thermal Power Project in Bihar.