The agreement is signed following the firm’s announcement of receiving the letter of intent on 1 October 2024. The ESFA is for supply of energy storage capacity for a period of 40 years where the company will be entitled to receive a fixed capacity charge of Rs 84.66 lakhs per MW per annum.
The Bhavali Pumped Hydro project situated in the Nashik and Thane districts of Maharashtra will feature an 8-hour discharge capacity with a maximum of 5 hours of continuous discharge. The project is expected to be commissioned in next 48 months.
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 a target of achieving carbon neutrality by 2050.
Sharad Mahendra, joint MD 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 is primarily engaged in the business of generation of power with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh) and Salboni (West Bengal).
The power generation company’s consolidated net profit jumped 79.99% to Rs 521.76 crore in Q1 FY25 as compared with Rs 289.88 crore recorded in Q1 FY24. However, revenue from operations fell by 1.65% YoY to Rs 2,879.46 crore June 2024 quarter.
Shares of JSW Energy rose 0.54% to currently trade at Rs710.70 on the BSE.