JSW Energy said on Monday that it has signed a power purchase agreement (PPA) with Haryana Power Purchase Centre (HPPC) for its 240 MW Kutehr hydro project in Himachal Pradesh. The power supply agreement will be valid for 35 years.
The PPA has been signed at a levelised tariff of `4.50/kWh. However, the company did not provide details on when the PPA will be effective.“The project construction is progressing well ahead of its schedule, with 65% tunnelling work completed by February 2022 and is expected to be commissioned by September 2024,” the company said in a statement. 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, the company said.
The PPA capacity was selected through competitive bidding under expression of interest was invited by the HPPC on July 3, 2018. JSW Energy has set an ambitious target for 50% reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85% of total.
JSW Energy’s 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 PPA’s 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 shortly.