JSW Neo Energy signs MoU for 1,500 MW Hydro Pumped Storage with Telangana Govt

22 Apr 2022 , 10:28 AM

JSW Energy Limited, through its wholly-owned subsidiary, JSW Neo Energy Limited, has entered into a Memorandum of Understanding with the Government of Telangana for setting up a 1,500 MW capacity Hydro Pumped Storage Project viz. Komoram Bheem Pump Storage Project in the State of Telangana.

On Friday, JSW Energy stock was trading at Rs345 per piece higher by 1.49% on the BSE, at around 10:30 AM.

With the rapid addition of renewable energy in the country, the development of energy storage solutions such as Hydro Pumped Storage Projects (PSP) becomes essential to solve for intermittent power supply from renewables. Hydro Pumped Storage is a well-established technology that provides adequate peaking power reserves, reliable grid operation, and energy balancing and storage capacity.

JSW Energy through its green growth vehicle JSW Neo Energy has been expeditiously securing key resources for Hydro PSPs in various resource-rich states for projects with a targeted capacity of 10 GW. With the signing of the aforesaid MoU, the Company has tied-up resources for 5 GW hydro PSPs with the Governments of various states (Maharashtra, Chhattisgarh, Telangana, and Rajasthan).

Prashant Jain, Joint Managing Director and CEO of JSW Energy, said, “We are excited by the prospects of Hydro PSPs in sustainably solving the problem of intermittency of renewable power. Further, our proven excellence in safely building hydro plants and operating the largest hydro portfolio in the private sector has uniquely enabled us to develop Hydro PSPs in the country. We are closely working with the various State Governments to kick start development of these projects in the coming months”.

JSW Energy has set an ambitious target for a 50% reduction in its 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% of the total.

Around 2.25 GW of renewable energy projects are currently under construction, Wind projects of 1.26 GW tied with SECI, are expected to be commissioned in the next 12 months. With the commissioning of these projects, the Company’s total generation capacity will increase to ~7 GW, with renewable energy share amounting to about 55%.

The Company is expeditiously securing resources of more than 20 GW capacity in various resource rich states. Further, the Company is evaluating opportunities for expansion into emerging energy businesses of battery energy storage, green hydrogen and energy products & services.