Mumbai, Mar 7: Sajjan Jindal led JSW Energy on Monday said it has signed a 35 year power purchase agreement with the Haryana discom for supplying 240 MW of hydro power for it project in Kutehr in Himachal Pradesh.
The PPA, which is valid for 35 years with further extension possible at mutually agreed terms, has been signed at a levelized ceiling tariff of Rs 4.50 per unit at ex bus-bar, the company said in a statement issued here.
“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 commitment,” Prashant Jain, Joint Managing Director and CEO, JSW Energy said.
The PPA has been finalised almost 4 years after the Haryana Power Purchase Centre (HPPC) had invited bids for long term agreements on July 3, 2018.
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 PPA will be utilised to meet the hydro power purchase obligation of the state discom utilities.
JSW’s wholly-owned step-down subsidiary JSW Energy Kutehr is currently constructing the 240 MW (3×80 MW) hydro-electric plant located in Kutehr, Chamba district of Himachal Pradesh.
The project construction is progressing well ahead of its schedule, with 65 per cent tunnelling work completed by February 2022 and is expected to be commissioned by September 2024.
“The construction of the project is in full-swing and will be completed in a record time in India,” Jain added.
The company further said that with the Board approval for corporate re-organisation in place, the renewable energy businesses including hydro assets are to be housed under a wholly owned subsidiary ‘JSW Neo Energy’.
The total capacity of the green business is 3.8 GW including 2.5 GW of under-construction projects, while the total hydro assets are 1.6 GW including 240 MW of under-construction project (Kutehr).
“The company has now signed PPA’s 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,” the company added.
JSW Energy has set an ambitious target for 50 per cent reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.
It has also set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85 per cent of total.
“The company is expeditiously securing resources of more than 20 GW in various resource rich states such as Karnataka, Maharashtra, Rajasthan, Gujarat, Tamil Nadu etc.,” it said.
Further, the company is also evaluating opportunities for expansion into emerging energy businesses of hydro pumped storage, battery energy storage, green hydrogen and energy products and services. (UNI)
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