JSW Energy Signs 40-Year Deal for 1,500 MW Pumped Hydro Storage in Maharashtra

14 Oct 2024 , 12:24 PM

JSW Energy’s subsidiary, JSW Energy PSP Two Ltd, signed an Energy Storage Facility Agreement (ESFA) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL) on October 11 for procuring 1,500 MW / 12,000 MWh of pumped hydro energy storage.

This agreement follows the receipt of the letter of intent on October 1, 2024. It secures energy storage capacity for 40 years, with the company receiving a fixed capacity charge of ₹84.66 lakhs per MW per annum.

The Bhavali Pumped Hydro Project, located in the Nashik and Thane districts of Maharashtra, will offer an 8-hour discharge capacity and allow up to 5 hours of continuous discharge.

The project is scheduled for completion within 48 months, enhancing energy reliability and grid stability in Maharashtra.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, highlighted the importance of integrating advanced energy storage solutions, which will contribute to grid stability and local development through employment generation and community growth.

At the time of writing on October 14, 2024 at 12:20 pm, shares of JSW Energy is trading at ₹702.90 which is a 0.54% dip than the previous close. JSW Energy has gained 75.20% in the last one year, and 71.42% since the beginning of the year.

JSW Energy’s total locked-in energy storage capacity stands at 16.2 GWh, comprising 14.4 GWh from pumped hydro storage and 1.8 GWh from battery energy storage.

The company has a total locked-in power generation capacity of 18.2 GW, including 7.7 GW operational, 2.1 GW under construction, and an 8.3 GW renewable energy pipeline.