JSW Energy announced that its step-down subsidiary, JSW Renew Energy Five Ltd., has received letters of award (LoA) from Solar Energy Corporation of India Ltd. (SECI) for standalone battery energy storage systems of 500 MW and 1,000 MW.
JSW Energy will be entitled to receive a fixed capacity charge of Rs 10.8 lakh per month for 12 years.
The SECI’s obligation will be 60 % of the project capacity while the remaining 40 % is to be managed by JSW Energy. The LoAs for Battery Energy Storage Systems (two projects each of 250 MW / 500 MWh) mark the entry of the JSW Group company into energy storage solutions.
JSW Energy mentioned that the project, which is an essential step towards India’s energy security and grid stability, provides an early-mover advantage to the company in the storage solution space.
It is also in line with the company’s strategy to transition towards an energy products and solutions company. JSW Energy looks to reach 10 GW capacity by 2025 and 20 GW capacity by 2030. The company has a total locked-in capacity of 9.9 GW and is well-placed to achieve the targets ahead of time.
The total renewable locked-in capacity of the company stands at 6 GW. It has 1.7 GW of operational renewable energy projects while 2.63 GW of projects are under construction or in the pipeline.
Last month, JSW Energy completed the acquisition of Ind-Barath Energy (Utkal) for Rs 1,047.60 crore through the debt resolution process. The company in July 2022 received approval from the Hyderabad bench of the National Company Law Tribunal for its resolution plan.
JSW Energy Ltd. is one of the leading private sector power producers in India and part of the USD 22 billion JSW Group, which has a significant presence in sectors such as steel, energy, infrastructure, cement, and sports among others. JSW Energy shares are 0.47 % higher at Rs 266.10.