JSW Energy shares crack 5% after CERC rejects proposed tariff for SECI project

The LoA for the project had marked JSW Energy's foray into energy storage solutions.

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Shares of JSW Energy are under intense selling pressure, down sharply by over 5% on January 6, after the company informed that the Central Electricity Regulatory Commission (CERC) has not approved the proposed tariff for a battery energy storage project from Solar Energy Corporation of India Limited (SECI).

CERC has cited that the tariff proposed by JSW Energy for the SECI project signed in January 2023 is much higher than what has been discovered in recent auctions. In an order dated January 2, 2025, CERC said the proposed tariff 'is not aligned with the prevailing market prices' due to delay by SECI in signing the Battery Energy Storage Purchase Agreement and the Battery Energy Storage Sale Agreement.

JSW Energy said it is in the process of filing an appeal against the CERC order.

The LoA for the project had marked JSW Energy's foray into energy storage solutions, giving the company an early mover advantage. "This is in line with the company’s long term strategy to transition towards an energy products and solutions company," Prashant Jain, Joint Managing Director and CEO of JSW Energy had said in January 2023.

JSW Energy had said that it will be entitled to a fixed capacity charge of Rs 10.8 lakh per MW per month for twelve years, and SECI's obligation would be limited to 60% of the project capacity. The remaining 40% of the project capacity would be managed by JSWEL.

The company has set a target to reach 20 GW capacity by 2030, and a near-term target of 10 GW by 2025. JSW Energy also has set an ambitious target for a 50% reduction in its carbon footprint by 2030, and Carbon Neutrality by 2050.