JSW Energy's Stock Rises on Battery Storage Deal with Solar Energy Corp

JSW Energy's shares witnessed a positive start in early trade on 6 March after a development by one of its subsidiaries. The company's step down subsidiary has secured a crucial Battery Energy Storage Purchase Agreement (BESPA) with Solar Energy Corporation of India Limited. At 9:26 am, JSW Energy was trading at ₹511.75, marking a gain of 0.47% on the BSE.

Project Details

JSW Renew Energy Five Limited a wholly owned subsidiary of JSW Neo Energy Limited has signed a BESPA for a project. This project involves a 250 MW / 500 MWh standalone battery energy storage system which is part of a larger project capacity of 500 MW / 1,000 MWh with Solar Energy Corporation of India Limited. The agreement entails a fixed capacity charge of Rs 10.84 lakh per MW per month for 12 years covering 60 percent of the total capacity. The project is expected to supply power within 18 months as per the contracted capacity.

Recent Project Wins

JSW Neo Energy has been granted the Letter of Award by the Solar Energy Corporation of India Limited for a wind capacity totaling 500 MW. This LoA was obtained through a tariff based competitive bid process initiated for the establishment of 1,350 MW ISTS connected Wind Power Projects (Tranche - XVI).

Additionally, the company's subsidiary has secured a capacity allocation of 6.5 KTPA for the establishment of a green hydrogen production facility. This achievement came through the first ever auction conducted by SECI under the strategic interventions for green hydrogen transition scheme.

Furthermore, the subsidiary has been awarded a project for an ISTS connected solar capacity of 700 MW from SJVN Limited. This project was won through a competitive bidding process for setting up 1,500 MW solar power projects connected to the ISTS.

Financials & Stock Performance

The company's consolidated net profit for the third quarter ended December 2023 showed an increase of 24.36% yoy to Rs 232.24 crore against ₹186.74 cr in the same quarter last year. Despite fluctuations on 26 February 2024 the share price touched a 52 week high of ₹537.90 and a 52 week low of ₹220.65 on 28 March 2023. Presently, the stock is trading 4.86% below its 52 week high and 131.93% above its 52 week low.

Final Words

JSW Energy plans to achieve a generation capacity of 20 GW and energy storage capacity of 40 GWh by 2030. They also aim for a 50% reduction in carbon footprint by 2030 and aim to be carbon neutral by 2050.