Marking its foray into energy storage solutions, JSW Energy (JSWEL) has won letter of awards (LoA) from the Solar Energy Corporation of India (SECI) for standalone battery energy storage systems totalling 500 MW.
The LoAs, awarded to JSWEL’s wholly-owned step down subsidiary of JSW Renew Energy Five, is for two projects each of 250 MW. The 500 MW of storage systems would have a total output of 1,000 MW, the company said in a regulatory update.
Also Read: JSW Energy arm bags two battery energy storage system projects from SECI
The company is entitled to receive a fixed capacity charge of Rs 10.8 lakh per MW per month for 12 years. SECI’s obligation is limited to 60% of the project capacity and the remaining 40% has to be managed by JSWEL, it said in a regulatory update.
“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 JSWEL, said.
JSWEL has set a near-term target of 10 GW by 2025 and reach 20 GW capacity by 2030, and with a total locked-in capacity of 9.9 GW, the company is well placed to achieve its targets well ahead of time, it said.
Around 1.7 GW of renewable energy projects are currently operational, and 2.63 GW is under-construction. With the acquisition of Mytrah Energy’s 1.75 GW renewable energy assets, the total renewable locked-in capacity of the company stands at 6 GW.
In August last year, JSW Neo Energy, a wholly-owned subsidiary of JSWEL, announced plans to acquire a portfolio of 1,753 MW of renewable Energy generation capacity from Mytrah Energy for Rs 10,530 crore.
Also Read: JSW Energy ahead of schedule to achieve 10 GW of installed capacity: Prashant Jain
JSW Energy has set a target for a 50% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.