JSW Renew Energy Thirteen Limited, a step-down subsidiary of JSW Energy Ltd, has signed a landmark power purchase agreement (PPA) with NTPC Limited. This agreement is for a solar capacity of 700 MW, connected via ISTS/STU, marking a significant step in India’s renewable energy growth. The project, set to be operational by June 2026, strengthens JSW Energy’s commitment to expanding its clean energy footprint.
Key Highlights of the Agreement
- Capacity: 700 MW solar project.
- PPA Duration: 25 years.
- Tariff Rate: ₹2.59 per kWh.
- Operational Date: Targeted for June 2026.
This agreement is part of JSW Energy’s broader strategy to increase its renewable energy capacity and aligns with India’s ambitious renewable energy targets.
JSW Energy’s Expanding Renewable Portfolio
JSW Energy currently boasts a total generation capacity of 18.2 GW, comprising:
- 7.7 GW: Operational capacity across wind, thermal, and hydro.
- 2.1 GW: Under construction.
- 8.3 GW: Renewable energy pipeline in development.
The company’s aggressive expansion plan aims to reach a generation capacity of 20 GW by 2030, driven by a diverse mix of energy sources including wind, solar, and hydroelectric projects. The ongoing development of 3.2 GW in the solar pipeline, with 2.0 GW already under signed PPAs, further highlights their leadership in the renewable energy sector.
Battery and Energy Storage Growth
Energy storage is another focus for JSW Energy, which has 16.2 GWh of capacity across battery energy storage and hydro-pumped storage projects. With an ambitious target of 40 GWh storage capacity by 2030, the company is positioning itself to play a critical role in balancing renewable energy supply and demand.
Financial Performance: A Strong Showing in Q1 FY25
JSW Energy’s financial performance remains robust despite a slight dip in revenue. Key metrics include:
- Revenue: Declined by 2%, from ₹2,928 crore in Q1 FY24 to ₹2,879 crore in Q1 FY25.
- Net Profit: Surged by 84%, from ₹290 crore to ₹534 crore over the same period.
This profit growth, despite revenue contraction, signals effective cost management and operational efficiencies. The company’s focus on scaling renewable energy projects and improving efficiency in its existing portfolio continues to drive profitability.
Growth in India’s Power Sector
India’s power sector experienced impressive growth in FY24:
- GDP growth: 8.2% for FY24.
- Manufacturing growth: 9.9%.
- Power demand: Increased by 7.5%, peaking at 250 GW in May 2024.
- Thermal Plant Load Factor (PLF): Improved to 76.4% in Q1 FY25.
Renewable Energy Capacity Expansion
India’s renewable energy capacity reached 446 GW, with 4.4 GW added in Q1 FY25, including:
- 3.7 GW: Solar.
- 800 MW: Wind.
The Indian government has set ambitious targets for 30-35 GW of renewable capacity additions by 2030, aiming to increase renewable energy consumption under Renewable Purchase Obligations (RPOs).
JSW Energy’s Role in Power Sector Growth
JSW Energy is actively contributing to the growing demand for power solutions, especially in renewable energy. In Q1 FY25, the company added 291 MW of wind capacity, which led to an 18% increase in total power generation year-on-year, producing 7.9 billion units.
- Renewable Generation Growth: Surged by 44%, driven by better hydrology that boosted hydro output by 61%.
- Thermal Generation: Increased by 4%, largely attributed to improved performance at Ratnagiri and Utkal Unit-1.
The company’s management remains optimistic, targeting a capacity of 10 GW by FY25 and 20 GW by 2030. JSW Energy is also investing in bespoke hybrid power solutions and Floating Dispatchable Renewable Energy (FDRE) projects, responding to the rising demand for customized energy solutions.
Chart: JSW Energy’s Renewable Energy Growth Plan
| Year | Targeted Capacity | Energy Storage (GWh) | Milestones |
|---|---|---|---|
| 2025 | 10 GW | 20 GWh | Aggressive expansion in wind, solar, hydro |
| 2030 | 20 GW | 40 GWh | Carbon neutrality roadmap, large-scale renewables |
Conclusion: A Promising Future for JSW Energy
With its ambitious growth targets and strong financial performance, JSW Renew Energy Thirteen Limited’s PPA with NTPC marks another milestone in India’s energy transformation. As the company continues to expand its renewable and energy storage capacities, it is well-positioned to meet India’s growing energy demands while leading the way in sustainable power generation.
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