JSW Energy is among the few privately owned power generators betting big on hydropower, which is a revenue spinner for the company.
“We are optimistic about the hydropower sector. More so, after the hydropower purchase obligation (HPO) notification by the Ministry of Power. This will lead to more power purchase agreements. We will be looking at larger hydropower projects,” said Prashant Jain, joint managing director and chief executive officer, JSW Energy.
JSW is operating 1.3-gigawatt (Gw) hydropower projects currently. Recently, the Haryana Electricity Regulatory Commission had approved a power procurement offer of JSW Energy for supply of 240 megawatt of hydropower. The company is expecting to commission the project by 2024-25.
The power ministry, in a recent notification dated January 29, had extended the mandatory HPO till 2030. The Centre is aiming to add 30 Gw of hydropower by 2030. HPO entails the compulsory purchase of hydropower by states as a percentage of their total energy demand.
JSW Energy, which declared its third-quarter (Q3) results last week, saw an uptick in revenue from its hydropower units (quarterly).
Jain said the Covid-19 pandemic did not have much of an impact on its business. Hydropower, solar, and wind units are categorized essential services and have a ‘must-run’ status.