JSW Energy to Build 1,500 MW Pumped Hydro Energy Storage Project
JSW Energy PSP Two Limited, a subsidiary of JSW Energy, has announced an Energy Storage Facility Agreement (ESFA) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to develop an impressive 1,500 MW/12,000 MWh pumped hydro energy storage project. This achievement comes after the issuance of a letter of intent on October 1, 2024.
Boosting India’s Energy Storage Capacity
With this 40-year agreement in place, JSW Energy will receive a fixed capacity charge of ₹84.66 lakhs per MW annually. Spanned across the Nashik and Thane districts of Maharashtra, the Bhavali Pumped Hydro Project boasts an impressive 8-hour discharge capability, with a maximum of 5 continuous hours of discharge. The project is expected to be commissioned within the next 48 months.
Job Creation and Infrastructure Development
Aside from its impact on India’s energy storage capacity, the Bhavali Pumped Hydro Project is expected to generate direct employment opportunities for around 3,000 individuals. Additionally, JSW Energy will contribute to local infrastructure improvements such as roads, irrigation, sanitation, and educational facilities as part of its Corporate Environmental Responsibility initiatives.
Advancing India’s National Electricity Plan
According to India’s National Electricity Plan, the nation aims to achieve a hydro pumped storage capacity of 27 GW by FY2032, with battery energy storage expected to reach 47 GW. With JSW Energy’s pumped hydro project coming into play, these targets become closer to reality.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed his enthusiasm about the agreement, noting, “Signing our first energy storage facility agreement for a pumped hydro storage plant marks a significant step in our journey toward becoming an energy products and services company. This project will enhance grid stability and contribute to local area development through advanced energy storage solutions.”
Ambitious Goals for JSW Energy
JSW Energy has set its sights on achieving a remarkable 40 GWh of energy storage capacity by 2030, with 16.2 GWh already secured. Currently boasting a total generation capacity of 18.2 GW, which includes 7.7 GW of operational capacity alongside an 8.3 GW renewable energy pipeline, the company aims to broaded its total generation capacity to 20 GW by 2030. Additionally, JSW Energy has set an ambitious goal of becoming carbon neutral by 2050.
