JSW Energy on Monday announced signing a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) for the supply of 240-megawatt hydro power.
The agreement is valid for 35 years (with further extension at mutually agreed terms), and signed at a levelised ceiling tariff of Rs 4.50 per kWh (kilowatt-hour), JSW Energy said in statement.
The JSW Group company said, "Its Kutehr project has signed a PPA with HPPC for supply of 240 MW hydro power. The PPA capacity was selected through competitive bidding under expression of interest invited by HPPC on July 3, 2018."
JSW Energy through its wholly-owned step-down subsidiary JSW Energy Kutehr Ltd (JSWEKL) is currently constructing the 240 MW (3x80 MW) hydro-electric plant located in Kutehr, Chamba district of Himachal Pradesh.
The project construction is progressing well ahead of its schedule, with 65 per cent tunnelling work completed by February 2022 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).
With the board approval for corporate re-organisation in place, the renewable energy businesses, including hydro assets, is to be housed under a wholly-owned subsidiary 'JSW Neo Energy Limited, the company statement said.
JSW Energy Joint MD and CEO Prashant Jain said, "Being the largest private sector operator of hydro power plants in India and having over two decades of experience of safely building and operating power projects, we continue to contribute meaningfully towards India's hydro power and COP-26 commitments."
JSW Energy has set a target for 50 per cent reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.
The company aims to reach 20 gigawatt (GW) capacity by 2030, with the share of renewable energy increasing to 85 per cent of total.
Around 2.5 GW of renewable projects are currently under-construction: 2.2 GW wind and solar projects, tied with SECI and JSW Group, are expected be commissioned in the next 12 months, while the 240 MW Kutehr hydro project is expected to be commissioned in the next 30 months.
With the commissioning of these projects, the company's total generation capacity will increase to seven GW, with renewable energy contributing to about 55 per cent.
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