JSW Energy’s wholly-owned step-down subsidiary JSW Energy Kutehr Ltd. has signed a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) to supply 240 megawatts (MW) hydropower.
The validity of the PPA is for 35 years (with possible extension at mutually agreed terms), and signed at a levelised ceiling tariff of Rs4.50/kilowatt per hour (kWh), said the company statement.
The JSW Group company said, “Its Kutehr project has signed a PPA with HPPC for the supply of 240 MW hydropower. The PPA capacity was selected through competitive bidding under expression of interest invited by HPPC on July 3, 2018.”
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 percent tunnelling work completed by February 2022 and is expected to be commissioned by September 2024,” the company said.
Haryana Power Purchase Centre will purchase the power on behalf of Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN).
With the approval of the board for corporate re-organization in place, the renewable energy businesses (Green) including hydro assets are to be housed under a wholly-owned subsidiary JSW Neo Energy Ltd.
Prashant Jain, joint managing director and CEO of JSW Energy, said, “The construction of the project is in full swing and will be completed in a record time in India.”
JSW Energy has set a target for a 50 per cent reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.
The company aims to reach 20gigawatt (GW) capacity by 2030, with the share of renewable energy increasing to 85 per cent of the total.
Around 2.5 gigawatts (GW) of renewable projects are currently under-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 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 per cent.