Mumbai: 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) hydro-electric 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 renewable energy increasing to 85% of total. Around 2.5 GW of renewable projects are currently under-construction: 2.2 GW wind and solar projects, tied with SECI and JSW Group, are expected be commissioned in the next 12 months, while the 240 MW Kutehr hydro project is expected to be commissioned in the 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, Tamil Nadu 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.