A Power Purchase Agreement Signed Between JSW Energy and Haryana Power Purchase Centre to Deliver 240 MW of Hydropower
Hydroelectric power produces electricity by leveraging the energy of moving water from higher to lower altitudes. Hydropower projects provide both clean lands for irrigation, homes, and businesses and facilitate the mitigation of the frequency of environmental weather events such as floods and drought. Hydropower is the world's single largest source of renewable electricity, with a record of 4,399 terawatt-hours generated by hydroelectricity in 2020. (TWh). As of 2020, hydropower contributes the most to global renewable electricity.
Furthermore, India's generation capacity has shot through the roof in tandem with the country's improving market and a booming population. The country engendered 1,560 TWh in 2020, up from 1,034 TWh in 2011. India has overtaken China as the third world power consumer, chasing only China and the United States. Besides that, India's net power generation capacity increased significantly over the last decade, with a large portion of that capacity coming from renewable energy sources such as hydroelectric power.
JSW Energy officially confirmed the signing of a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) to supply 240 megawatts of hydropower.JSW Energy said that the memorandum of understanding is valid for 35 years (with further extensions at mutually agreed terms) and was signed at a levelised ceiling tariff of INR 4.50 per kWh (kilowatt-hour).
According to JSW Group, its Kutehr project has negotiated a PPA with HPPC to supply 240 MW of hydropower. On July 3, 2018, HPPC invited expressions of interest for PPA capacity, randomly picked through competitive bidding. JSW Energy is actively developing a 240 MW (3x80 MW) hydro-electric plant in Kutehr, Himachal, through its own entirely and utterly process is a multi-subsidiary JSW Energy Kutehr Ltd.
The development is well ahead of time, with 65% of the tunnelling work completed by February 2022, and it is scheduled to be completed by September 2024. The HPPC will purchase the power on behalf of the Uttar Haryana Bijli Vitran Nigam and the Dakshin Haryana Bijli Vitran Nigam.
As per the company statement, the renewable energy businesses, including hydro assets, will be housed under a wholly-owned subsidiary JSW Neo Energy Limited. Prashant Jain, Joint MD, and CEO of JSW Energy stated, as the largest private-sector operator of hydropower plants in India and with over two decades of experience safely building and operating power projects, the company continues to contribute meaningfully to India's hydropower and COP-26 commitments.
JSW Energy has set a goal to reduce its carbon footprint by half by 2030 and become carbon neutral by 2050 by shifting to renewable energy. The company aims to reach 20 gigatonnes of capacity by 2030, with renewable energy accounting for 85 percent of total power. Presently, approximately 2.5 GW of offshore wind farms are under development: The 2.2 GW photovoltaic systems projects, made in conjunction with SECI and JSW Group, are supposed to be completed within the next 12 months, while the 240 MW Kutehr hydro project is due to be completed within the next 30 months. With the completion of these projects, the company's total generation capacity will rise to seven GW, with renewable energy accounting for approximately 55% of that total.