JSW Energy signs PPAs for renewable energy projects with a capacity of over 1.3 GW

JSW Energy and SECI partnership

JSW Neo Energy Limited, a subsidiary of JSW Energy Limited, has made significant progress in the expansion of renewable energy. The company has signed power purchase agreements (“PPAs”) through its subsidiaries for wind and solar projects with a total capacity of 1,325 MW. This includes 1,025 MW in Solar Energy Corporation of India Limited (“SECI”) and 300 MW in Gujarat Urja Vikas Nigam Limited (“GUVNL”), taking the company’s total locked capacity to 13.6 GW.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, he said: “We are pleased to have signed power purchase agreements with SECI and GUVNL for a cumulative renewable capacity of 1.3 GW. This includes a 1 GW wind power PPA with SECI, which is India’s largest wind power PPA by a single bidder in a single offer. The PPAs cover a total of 36% of our pipeline capacity and would enable us to accelerate our growth targets of 20 GW by 2030. This is the next step in our renewable growth strategy and we will continue to make a significant contribution to achieve India’s renewable energy and net zero ambitions.”

The most important features:

– Largest single tranche of PPA concluded by SECI: The 1,025 MW wind energy PPA is the largest single tranche of the PPA signed by SECI. This project carries a blended tariff of ₹3.62 per kWh for 25 years and is expected to be commissioned within 24 months in Gujarat (JSW Renew Energy Eight Limited) and Karnataka (JSW Renew Energy Four Limited). Currently, the total capacity blocked in the Company’s wind farms is 4.8 GW.

– Solar capacity from GUVNL: The 300 MW grid-connected solar power PPA with GUVNL, awarded under Gujarat State Electricity Corporation Limited’s RE Park at Khavda (“GSECL Stage-3”), has a tariff of ₹2.66/KWh for 25 years. The project located in Gujarat (JSW Renew Energy Ten Limited) is expected to be commissioned within 21 months. Currently, the Company’s total blocked photovoltaic capacity is 3.3 GW.

Strategic development and commitment to environmental protection:

JSW Energy’s total blocked generation capacity is currently 13.6 GW, including 7.3 GW in the operational phase and 2.6 GW under construction in wind, thermal and hydro projects. The company’s renewable energy pipeline currently has a capacity of 3.7 GW, of which 1.3 GW has signed PPAs. Additionally, JSW Energy secured 3.4 GWh of energy storage capacity through battery energy storage and pumped storage projects. The company has committed to achieving 20 GW of generation capacity and 40 GWh of energy storage capacity by 2030.

Ongoing and upcoming projects:

– Projects under construction:

– Water: The 240 MW Kutehr hydropower plant, associated with the Haryana Power Procurement Center, contributes 1.6 GW of the company’s locked hydropower capacity.

– Thermal: The construction of unit no. 2 with a capacity of 350 MW of the Ind-Barath thermal power plant is underway. Unit No. 1 (350 MW) was synchronized in January 2024, which means the fastest revival of the closed CHP plant. The total blocked thermal capacity of JSW Energy is 3,858 MW, with the installed capacity of 3,508 MW.

– Wind: JSW Energy is implementing wind projects with a total capacity of 2.0 GW, including SECI IX (718 MW), SECI X (205 MW), SECI XII (300 MW) and Group Captive (737 MW).

– New Age companies:

– JSW Energy will implement groundbreaking projects in the field of energy storage and green hydrogen production. This includes a 500 MW/1,000 MWh battery energy storage system (BESS) and India’s largest green hydrogen plant for green steel. The hydrogen plant has a 7-year supply agreement with JSW Steel Ltd and is expected to be operational in Q4FY25.

– Currently, the company has 3.4 GWh of closed storage capacity, with a signed PPA for 250 MW/500 MWh BESS with SECI.

– To minimize risks in its supply chain, JSW Energy has entered into a technology licensing agreement with SANY Renewable Energy for the production of 3.X MW wind turbines (WTG).