Mumbai: JSW Energy's Kutehr project has signed a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) for supply of 240 MW hydro power. The PPA is valid for a period of 35 years (with further extension possible at mutually agreed terms), and signed at a levelised ceiling tariff of Rs 4.50/kWh (at ex bus-bar). The PPA capacity was selected through competitive bidding under Expression of Interest invited by the HPPC on 3rd July 2018.
JSW Energy, through its wholly-owned step-down subsidiary 'JSW Energy Kutehr Limited' (JSWEKL), is currently constructing the 240 MW (3×80 MW) hydroelectric plant located in Kutehr, Chamba district of Himachal Pradesh. The project construction is progressing well ahead of its schedule, with 65 percent tunnelling work completed by February 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). In September 2020, Haryana Electricity Regulatory Commission (HERC) had granted its approval for above procurement of power and had directed the parties to finalise the PPA. The power purchased under the PPA will be utilised to meet the Hydro Power Purchase Obligation (HPPO) of the state discom utilities.
With the Board approval for corporate re-organisation in place, the renewable energy businesses (green) including hydro assets are to be housed under a wholly owned subsidiary 'JSW Neo Energy Limited'. The total capacity of the green business is 3.8 GW, including 2.5 GW of under-construction projects, while the total Hydro assets are 1.6 GW, including 240 MW of under-construction project (Kutehr). The company has now signed PPAs for the entire 2.5 GW under-construction renewable projects, and the 225 MW solar plant (under group captive) is nearing completion with commissioning scheduled in the next few weeks.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: "Hydro power has an important role to play in achieving India's renewable and net-zero ambitions. 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. The construction of the project is in full-swing and will be completed in a record time in India."
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