JSW Energy steps up focus on battery storage to address intermittency

Intermittency refers to irregular power supply from renewable sources, since they aren't always available; Projects from SECI first in this segment; will look at more, says company MD Prashant Jain

The energy arm of the JSW group proposes to increase its focus on battery storage solutions as the shift to renewable power across industries entails tackling the issue of intermittency in the sector. Simply put, intermittency in renewable energy refers to irregular power supply from renewable sources, since they are not constantly available. Battery storage solutions can vary from pumped hydroelectric energy storage solutions to lithium-ion battery solutions to cryogenic energy storage solutions. Of these, pumped hydroelectric storage and lithium-ion battery storage are among popular technologies available.

Last week, JSW Energy marked its entry into battery storage solutions with two projects from the Solar Energy Corporation of India (SECI). "This is the first step in this direction," says Prashant Jain, managing director & CEO, JSW Energy, said. "We are building these storage solutions in Rajasthan, which we are targeting to complete by October 2024. We will look at more such projects as the need to tackle intermittency (at an industry level) will grow."

The SECI projects awarded to JSW Energy are storage systems of 500 MW/1,000 MW which means that 500 MW of battery energy can provide power backup for two hours, giving total output of 1,000 MW, Jain explains.

The company will be entitled to receive a fixed capacity charge of Rs 10.8 lakh per MW per month for twelve years for the SECI projects, Jain said. Parallely, JSW Energy will also be starting its first pumped hydro storage project this calendar year for its steel plant in Karnataka.

While the company has been allocated up to 50KWh (kilo-watts per hour) of pumped hydro storage projects in various states across the country, these are in initial stages of development.

"The government is mindful of the need for storage, whether pumped hydro storage or lithium-ion battery storage solutions, for the stabilisation of the grid. We are waiting for a clearer policy framework in the area. The same goes for green hydrogen. Once a policy framework is in place, we will be in a position to get contracts and start work on green hydrogen projects," Jain said.

The company is looking to commission 2.25 Gw of renewable energy capacity in the next 18 months through organic and inorganic routes. The acquisition of 1.75 GW of Mytrah Energy assets, announced in August last year, was a step in that direction and was the firm's largest deal to date, done at an enterprise value of Rs 10,530 crore, Jain said. The deal, which was to be closed by December-end, will now be concluded in the March quarter of the ongoing fiscal, he said.

While the company has also completed the acquisition of 700 MW of Ind-Barath Energy (Utkal) for Rs 1,047.60 crore through insolvency proceedings in the December quarter, JSW Energy will give greater priority to renewable energy projects, Jain said.

The plan is to touch 10 GW of installed capacity by FY25 (from around 5GW now), led by renewable energy and double its installed base to 20 GW by FY30.