JSW Energy Marks Entry into Energy Storage With LoA from SECI

A subsidiary of JSW Energy Ltd, JSW Renew Energy Five Limited has announced that it has received a Letter of Award for standalone battery energy storage systems from Solar Energy Corporation of India Limited (SECI). The cumulative capacity of the BESS projects is 500 MW/1,000 MWh which entails two projects each of 250 MW / 500 MWh capacities. The firm had won the auction back in August last year.

The firm will be receiving a capacity charge fixed at Rs. 10.8 lakhs per MW every month. This will be valid for a period for twelve years.

While SECI will be looking into 60% of the project capacity/energy, the remaining 40% is to be managed by JSWEL.

The firm looks to achieve 20 GW capacity by 2030. The target for 2025 has been set at 10 GW by 2025.

As of now, close to 1.7 GW of renewable energy projects are already in operation. Another 2.63 GW is under construction. JSW Neo Energy has acquired Mytrah Energy’s renewable energy assets last year worth 1.75 GW capacity, taking up the current capacity of JSW Energy to 6.0 GW.

“We are excited to receive the LoA for Battery Energy Storage System which marks our foray into energy storage solutions. This is an essential step towards our nation’s energy security and grid stability and gives us an early mover advantage in the storage solution space. This is in line with the company’s long term strategy to transition towards an energy products and solutions company,” Prashant Jain, Joint Managing Director and CEO of JSW Energy, stated.

In December, in what is another partnership between JSW and SECI, JSW Renew Energy Two Ltd announced that  “JSW Renew Energy Two Ltd, a step-down subsidiary of JSW Energy, has started phase-wise commissioning of 450 MW ISTS-connected wind power project awarded under SECI. The project and SECI have a power purchase agreement for 25 years.

Back in July 2022, JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, had received Letter of Award (LoA) for a total wind capacity of 300 MW from Solar Energy Corporation of India Limited (SECI).