JSW Energy, Maharashtra sign 40-year pumped hydro storage deal

This involves the Bhavali project that will be commissioned in 48 months.

JSW Energy PSP Two Limited, a step-down subsidiary of JSW Energy Limited, has signed an energy storage facility agreement (ESFA) with Maharashtra State Electricity Distribution Company Ltd for the procurement of 1,500 megawatts (MW) / 12,000 megawatt-hours of pumped hydro energy storage.

In a bourse filing, the company said the agreement is for the supply of energy storage capacity for a period of 40 years where JSW Energy will receive a fixed capacity charge of INR84.66 lakhs per MW per annum. 

The Bhavali Pumped Hydro Project in the Nashik and Thane districts will feature an eight-hour discharge capacity with a maximum of five hours of continuous discharge. The project is expected to be commissioned in the next 48 months.

“By integrating advanced energy storage solutions, this project will not only enhance grid stability but also reinforce our commitment to provide sustainable and reliable power,” said Sharad Mahendra, joint managing director and CEO of JSW Energy.

“Additionally, it will contribute to local area development by generating employment opportunities and fostering community resilience,” he added.

JSW Energy has a locked-in energy storage capacity of 16.2 gigawatt-hours (GWh), whilst its total locked-in generation capacity is 18.2 gigawatts (GW). It aims for 20 GW generation and 40 GWh storage by 2030 and carbon neutrality by 2050.