JSW Energy (Kutehr) Limited signs Power Purchase Agreement with Haryana Power Purchase Centre

JSW Energy’s Kutehr project has signed a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) for supply of 240 MW hydro power. The PPA is valid for a period of 35 years (with further extension possible at mutually agreed terms), and signed at a Levelized ceiling tariff of Rs 4.50/kWh (at ex bus-bar). The PPA capacity was selected through competitive bidding under Expression of Interest invited by the HPPC on 3rd July 2018.

JSW Energy (or “the Company”) through its wholly-owned step-down subsidiary ‘JSW Energy Kutehr Limited’ (JSWEKL) is currently constructing the 240 MW (3×80 MW) hydroelectric plant located in Kutehr, Chamba district of Himachal Pradesh. The project construction is progressing well ahead of its schedule, with 65% tunnelling work completed by Feb’22 and is expected to be commissioned by September 2024. 

Haryana Power Purchase Centre will purchase the power on behalf of Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). In Sep’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 (HPPO) of the state discom utilities. 

With the Board approval for corporate re-organisation in place, the 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 Green business is 3.8GW including 2.5GW of under-construction projects, while the total Hydro assets are 1.6GW 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.

Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: “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.”

JSW  Energy  has  set  an  ambitious  target  for  50%  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  renewabl e energy  increasing  to  85%  of  total.  Around  2.5  GW of renewable  projects  are  currently underb construction:  2.2  GW  wind  and  solar  projects,  tied  with  SECI and  JSW  Group,  are expected  to be  commissioned  in  the  next 12 months, while  the  240  MW  Kutehr  hydro  project to be commissioned in next  30 months.  With  the  commissioning  of  these projects,  the  Company’s  total  generation  capacity  will  increase  to  ~7  GW,  with  renewable energy contributing  to  about  55%.

The  Company  is  expeditiously  securing  resources  of  more  than  20  GW  in  various resource  rich  states  such  as  Karnataka,  Maharashtra,  Rajasthan,  Gujarat,  Tamilnadu etc.  Further,  the  Company  is  evaluating  opportunities  for  expansion  into  emerging  energy businesses  of  hydro  pumped  storage,  battery  energy  storage,  green  hydrogen  and energy products  &  services.