LIC-Backed Energy Company Signs PPA for 1,200 MW Solar-Wind Hybrid Capacity with MSEDCL Following GUVNL Agreement; FIIs Nearly Double Stake in Q1 FY25!

Rakesh Deshmukh
LIC-Backed Energy Company Signs PPA for 1,200 MW Solar-Wind Hybrid Capacity with MSEDCL Following GUVNL Agreement; FIIs Nearly Double Stake in Q1 FY25!

Total generation capacity is 18.2 GW, comprising 7.7 GW operational, 2.1 GW under construction, and an 8.3 GW renewable energy pipeline, along with 16.2 GWh of energy storage capacity.

JSW Renew Energy Six Limited and JSW Renew Energy Thirty Limited, step-down subsidiaries of JSW Energy Limited, have entered into Power Purchase Agreements (PPAs) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for state transmission utility (STU)-connected solar-wind hybrid projects.

The agreements cover two projects, each with a capacity of 600 MW, totaling 1,200 MW. The Letters of Award for these projects were received on August 29, 2024, and September 10, 2024, respectively. The PPAs, set for a 25-year period, are priced at a tariff of ₹3.60/kWh. These projects are expected to be commissioned within 24 months and will be connected to the STU network in Maharashtra. Currently, the company has a project pipeline of 8.3 GW, with PPAs signed for 4.4 GW.

Recent PPA with GUVNL

JSW Renew Energy Seventeen Ltd, a step-down subsidiary of JSW Energy Ltd, has signed its first Power Purchase Agreement (PPA) for a 192 MW wind-solar hybrid project with GUVNL.

The said agreement, set for 25 years, is for power supply at a tariff of Rs 3.27/kWh. The project, connected to the STU in Gujarat, is expected to be commissioned within 24 months.

JSW Energy currently has a project pipeline of 8.3 GW, with PPAs signed for 3.2 GW. Its total generation capacity stands at 18.2 GW, including 7.7 GW operational and 2.1 GW under construction across wind, thermal, and hydro projects. Additionally, the company has locked in 16.2 GWh of energy storage capacity and aims to reach 20 GW of generation and 40 GWh of energy storage by 2030. JSW Energy is targeting carbon neutrality by 2050.

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PPA With NTPC Ltd

On October 14, JSW Renew Energy Thirteen Ltd, a step-down subsidiary of JSW Energy Ltd, has signed a Power Purchase Agreement (PPA) with NTPC Ltd for a solar capacity of 700 MW, connected to ISTS/STU. The agreement is set for 25 years at a tariff of Rs 2.59 per kWh, and the project is expected to be commissioned by June 2026. This marks a significant milestone for JSW Energy’s solar pipeline, which currently stands at 3.2 GW, with 2.0 GW already having PPAs signed.

Share Performance

Today, the shares of JSW Energy Ltd closed the day at around Rs 679.60 per share. The company’s current market capitalization stands at Rs 1.18 lakh crore. The stock has delivered a return of over 70 per cent in just 1 year.

Financial Performance

As per the Quarterly Results, in the first quarter of FY25, JSW Energy Ltd recorded a revenue of Rs 2879 crore. The operating profit for Q1 FY25 stood at Rs 1418 crore. The net profit for Q1 FY25 was Rs 534 crore. Looking at the annual performance, the company generated a revenue of Rs 11486 crore in FY24, compared to Rs 10332 crore in FY23. The operating profit for FY24 was Rs 5382 crore with a net profit of Rs 1725 crore.

According to the shareholding pattern, promoters own 69.32 per cent, while 5.90 per cent is owned by public investors. FIIs and DIIs own 15.37 per cent which was earlier 8.37 per cent and 9.21 per cent stake in the company.

Investors must keep this Large-Cap energy stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.

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