JSW Energy Surges as it Seals Battery Power Storage Agreement with Solar Energy Corp

In the initial trading session on March 6, the share price of JSW Energy showed a slight upward movement. This movement came after the company’s subsidiary entered into a battery energy storage purchase agreement (BESPA) with Solar Energy Corporation of India Limited.

At 9:26 am, JSW Energy’s stock was trading at Rs 511.75 on the BSE, showing an increase of Rs 2.40 or 0.47 percent.

According to a press release issued by the company, JSW Renew Energy Five Limited, a wholly-owned subsidiary of JSW Neo Energy Limited and a step-down subsidiary of JSW Energy, has finalized a battery energy storage purchase agreement (BESPA). This agreement pertains to the first project involving a standalone battery energy storage system with a capacity of 250 MW / 500 MWh, out of the total awarded project capacity of 500 MW / 1,000 MWh (comprising two projects, each with a capacity of 250 MW / 500 MWh). The agreement has been signed with Solar Energy Corporation of India Limited.

Under the terms of the agreement, JSW Energy will be entitled to receive a fixed capacity charge of Rs 10.84 lakh per MW per month for 12 years, corresponding to 60 percent of the total capacity, amounting to 150 MW / 300 MWh.

The remaining 40 percent of the project capacity, i.e., 100 MW / 200 MWh, is to be managed by the company. The project is mandated to deliver power at the contracted capacity within a span of 18 months.

In February, JSW Neo Energy was awarded the Letter of Awards (LoA) for a wind capacity of 500 MW from Solar Energy Corporation of India Limited (SECI) as part of the tariff-based competitive bidding process for establishing 1,350 MW ISTS-connected Wind Power Projects (Tranche – XVI).

Additionally, the subsidiary secured a capacity allocation of 6.5 KTPA for establishing a green hydrogen production facility, marking its success in the inaugural auction conducted by SECI under the strategic interventions for green hydrogen transition scheme.

Furthermore, the subsidiary received a project for ISTS-connected solar capacity of 700 MW from SJVN Limited, following a tariff-based competitive bidding process for establishing 1,500-MW ISTS-connected solar power projects.

In terms of financial performance, the company reported a significant year-on-year increase of 24.36 percent in consolidated net profit for the third quarter ended December 2023, amounting to Rs 232.24 crore compared to Rs 186.74 crore in the corresponding quarter of the previous year.

On the stock market front, JSW Neo Energy’s share price hit a 52-week high of Rs 537.90 and a 52-week low of Rs 220.65 on February 26, 2024, and March 28, 2023, respectively. Presently, the stock is trading 4.86 percent below its 52-week high and 131.93 percent above its 52-week low.

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