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 which can be further extended at mutually agreed terms. The PPA was signed at a levelised ceiling tariff of ₹4.50/kWh (at ex bus-bar).

The PPA capacity was selected through competitive bidding under expression of interest invited by the HPPC in July 2018.

JSW Energy through its wholly-owned step-down subsidiary JSW Energy Kutehr (JSWEKL) is currently constructing the 240 MW (3x80 MW) hydroelectric plant at Kutehr in 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,” JSW energy said.

HPPC will purchase the power on behalf of Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN).

Haryana Electricity Regulatory Commission (HERC) gave its approval for the procurement of power in September 2020 and had directed the parties to finalise the PPA.

The power purchased under PPA will be utilised to meet the Hydro Power Purchase Obligation (HPPO) of the State discom utilities.

Corporate rejig

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 3.8 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 PPAs’ 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.

‘Green goals’

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, we continue to contribute 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.”

JSW Energy has set a target for a 50 percent 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 percent of total.

Project pipeline

Around 2.5 GW of renewable energy 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, JSW Energy’s total generation capacity will increase to about 7 GW, with renewable energy contributing to about 55 percent. It is securing resources of more than 20 GW in various resource rich States such as Karnataka, Maharashtra, Rajasthan, Gujarat and Tamil Nadu.

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