JSW Energy inks 240 MW power deal with Haryana discom for Kutehr project

JSW Energy | Representative image

JSW Energy’s Kutehr project has signed a pact with Haryana Power Purchase Centre (HPPC) for supply of 240 MW hydro electricity.

The power purchase agreement (PPA) is valid for a period of 35 years, and has been signed at a levelised ceiling tariff of Rs 4.50/kWh (at ex bus-bar), according to a regulatory filing by the private sector power company on March 7. The PPA capacity was selected through competitive bidding under Expression of Interest invited by the HPPC on July 3, 2018.

JSW Energy, through its wholly owned step-down subsidiary JSW Energy Kutehr Limited (JSWEKL), is constructing the 240 MW (3x80 MW) hydro-electric plant in Kutehr, Chamba district of Himachal Pradesh. The project construction is progressing well ahead of its schedule, with 65 percent tunneling work completed by February 2022 and is expected to be commissioned by September 2024, the regulatory filing said.

Also Read: JSW Group joins World Business Council for Sustainable Development

HPPC will purchase the power on behalf of Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). In September 2020, Haryana Electricity Regulatory Commission (HERC) had granted its approval for above procurement of power and had directed the parties to finalise the PPA. The power purchased under the deal will be utilised to meet the Hydro Power Purchase Obligation (HPPO) of the state discom utilities.

“Hydro power has an important role to play in achieving India’s renewable and net-zero ambitions. Being the largest private sector operator of hydro power plants in India and having over two decades of experience of safely building and operating power projects, we continue to contribute meaningfully towards India’s hydro power and COP-26 commitments. The construction of the project is in full-swing and will be completed in a record time in India,” Prashant Jain, Joint Managing Director and CEO of JSW Energy, said.

With the Board approval for corporate re-organisation in place, JSW’s renewable energy businesses (Green) including hydro assets are to be housed under a wholly owned subsidiary ‘JSW Neo Energy Limited’. The total capacity of the company’s green business currently stands at 3.8GW including 2.5GW of under-construction projects, while that of the total hydro assets is at 1.6GW including 240 MW of under-construction project (Kutehr).

The company has now signed PPAs for the entire 2.5 GW under-construction renewable projects, and the 225 MW solar plant (under group Captive) is nearing completion with commissioning scheduled in the next few weeks.

JSW Energy has set an ambitious target for 50 percent reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The Company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85 percent of total.

At 10:15am, shares of JSW Energy were trading at Rs 315.40 apiece on the BSE, down 4.26 percent, while the benchmark Sensex had shed 1587.35 points or 2.92 percent at 52,746.46.