JSW Energy PSP Two Limited, a subsidiary of JSW Energy Limited, has entered into an agreement with the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to develop a major pumped hydro energy storage project, the company announced through an exchange filing on Friday (October 11).
"The ESFA is signed following our announcement of receiving the letter of intent on October 1, 2024," added the company in the regulatory filing,
Under this agreement, JSW Energy will procure an impressive 1,500 MW / 12,000 MWh of pumped hydro energy storage capacity.
The agreement is set to last for an extended period of 40 years, with the company earning a fixed capacity charge of Rs 84.66 lakhs per MW per annum.
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Sharad Mahendra, the Joint Managing Director and CEO of JSW Energy, said, “We are thrilled to sign our first energy storage facility agreement for a pumped hydro storage plant, marking a significant milestone in our journey towards becoming energy products and services company. By integrating advanced energy storage solutions, this project will not only enhance grid stability but also reinforce our commitment to provide sustainable and reliable power. Additionally, it will contribute to local area development by generating employment opportunities and fostering community resilience.”
JSW Energy’s locked-in energy storage capacity currently stands at 16.2 GWh, comprising 14.4 GWh from pumped hydro storage and 1.8 GWh from battery energy storage systems.
As per the exchange filing, the company further added, "JSW Energy has total locked-in generation capacity of 18.2 GW comprising of 7.7 GW operational, 2.1 GW under-construction across wind, thermal and hydro and RE pipeline of 8.3 GW. The company also has 16.2 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The Company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030. JSW Energy has set an ambitious target of achieving Carbon Neutrality by 2050."
Share performance
The share performance on JSW Energy on Friday ended the day at Rs 706.45 apiece, down by 3.07 per cent.
