JSW Energy inks 240 MW PPA with Haryana Discom

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 (with further extension possible at mutually agreed terms), and signed at a Levelized ceiling tariff of Rs 4.50 per kWh. The PPA capacity was selected through competitive bidding under Expression of Interest invited by the HPPC on 3 July 2018.

JSW Energy through its wholly-owned step-down subsidiary 'JSW Energy Kutehr Limited' (JSWEKL) is currently constructing the 240 MW (3x80 MW) hydroelectric plant located in Kutehr, Chamba district of Himachal Pradesh. The project construction is progressing well ahead of its schedule, with 65% tunnelling work completed by Feb'22 and is expected to be commissioned by September 2024.

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

In Sep'2020, Haryana Electricity Regulatory Commission (HERC) had granted its approval for above procurement of power and had directed the parties to finalise the PPA. The power purchased under the PPA will be utilised to meet the Hydro Power Purchase Obligation (HPPO) of the state discom utilities.

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.

The total capacity of the Green business is 3.8GW including 2.5GW of under-construction projects, while the total Hydro assets are 1.6GW including 240 MW of under-construction project (Kutehr).

The company has now signed PPA's 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.

JSW Energy is one of the leading private sector power producers in India and part of the $13 billion JSW Group. JSW Energy has established its presence across the value chains of power sector with diversified assets 》 power generation, and transmission.

The company's consolidated net profit surged 162.23% to Rs 323.93 crore on 17.69% increase in net sales to Rs 1,893.54 crore in Q3 December 2021 over Q3 December 2020.

The scrip slumped 4.67% to currently trade at Rs 314.05 on the BSE.

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