LIC-Backed Power Company Signs PPA for 700 MW ISTS/STU-Connected Solar Capacity with NTPC: FIIs Nearly Double Stake in Q1 FY25!

Rakesh Deshmukh
LIC-Backed Power Company Signs PPA for 700 MW ISTS/STU-Connected Solar Capacity with NTPC: 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 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.

JSW Energy’s total locked-in generation capacity has now reached 18.2 GW. This comprises 7.7 GW of operational capacity, 2.1 GW under construction across wind, thermal, and hydro projects, and a renewable energy (RE) pipeline of 8.3 GW. Additionally, the company has 16.2 GWh of locked-in energy storage capacity through its battery energy storage system and hydro-pumped storage projects.

Looking ahead, JSW Energy aims to reach a generation capacity of 20 GW and an energy storage capacity of 40 GWh by 2030, as part of its long-term growth strategy. Notably, the company has also set a target to achieve carbon neutrality by 2050, underscoring its commitment to sustainability and renewable energy expansion.

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In addition to the PPA, another step-down subsidiary, JSW Energy PSP Two Ltd, signed an Energy Storage Facility Agreement (ESFA) with the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) on October 11, 2024. This agreement follows the announcement of receiving the letter of intent on October 1, 2024, for the procurement of 1,500 MW / 12,000 MWh of pumped hydro energy storage. The ESFA is a 40-year contract, entitling JSW Energy to a fixed capacity charge of Rs 84.66 lakhs per MW per annum.

The energy storage will be supplied by the Bhavali Pumped Hydro Project, located in the Nashik and Thane districts of Maharashtra. The project will feature an 8-hour discharge capacity, with a maximum of 5 hours of continuous discharge. It is expected to be commissioned within the next 48 months, adding to JSW Energy’s growing portfolio of sustainable energy solutions.

Today, the shares of JSW Energy Ltd closed the day at around Rs 702.80 per share. The company’s current market capitalization stands at Rs 1.22 lakh crore. The stock has delivered a return of over 75 per cent in just 1 year.

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 stock on their radar.

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

 

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