JSW Energy PSP Two Ltd. has signed an energy storage facility agreement with the Maharashtra State Electricity Distribution Co. for the procurement of 1,500 MW worth of pumped hydro energy storage.
JSW Energy PSP Two is a step-down subsidiary of JSW Energy Ltd.
The agreement was signed following the announcement of the company receiving the letter of intent on Oct. 1, 2024.
The agreement involves the supply of energy storage capacity for 40 years, during which JSW will be entitled to receive a fixed capacity charge of ₹84.66 lakh per MW per annum.
The Bhavali Pumped Hydro Project will have an eight-hour discharge capacity with a maximum of five hours of continuous discharge. The project is expected to be commissioned in the next 48 months.
The project is situated in the Nashik and Thane districts of Maharashtra.
“We are thrilled to sign our first energy storage facility agreement for a pumped hydro storage plant, marking a significant milestone in our journey towards becoming an energy products and services company," Sharad Mahendra, joint managing director and chief executive officer of JSW Energy, said.
This project is expected to enhance grid stability by integrating advanced energy storage solutions. It is a part of the company's efforts to provide sustainable and reliable power.
It was also built with the intention to contribute to the development of the local area by generating employment opportunities and "fostering community resilience.”
Shares of JSW Energy closed 3.07% lower at Rs 706.70 apiece on the NSE, compared to a 0.14% decline in the benchmark Nifty 50.
The stock has risen 72.77% on a year-to-date basis and 77.85% over the past 12 months.
Of the 13 analysts tracking the company, six have a "buy" rating on the stock, four suggest a "hold," and three recommend a "sell," according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 0.1%.
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