JSW Energy has made foray in the energy storage solutions space following the winning of letters of awards for two such projects from Solar Energy Corporation of India Ltd (SECI).
In a release, JSW Energy said that JSW Renew Energy Five Ltd, a 100 per cent step-down subsidiary of JSW Energy Ltd has received letters of award for total 500MW/1,000MWh standalone battery energy storage systems (two projects each of 250 MW/500 MWh) from SECI.
JSW Energy Ltd (JSWEL) will be entitled to receive a fixed capacity charge of Rs.10.8 lakh per MW per month for twelve years. SECI’s obligation shall be limited to 60 per cent of the project capacity/energy and remaining 40 per cent of the project capacity is to be managed by JSWEL, the release said.
The projects were won under global tariff based competitive bidding as part of the SECI’s tender, officially referred to as “ESS-1”.
Energy security
According to Prashant Jain, Joint Managing Director and CEO, JSW Energy, “We are excited to receive the LoA for battery energy storage system which marks our foray into energy storage solutions. This is an essential step towards our nation’s energy security and grid stability and gives us an early mover advantage in the storage solution space. This is in line with the company’s long term strategy to transition towards an energy products and solutions company.”
Green portfolio
JSW Energy has set a target to reach 20 GW capacity by 2030 and near-term target of 10 GW by 2025, with a total locked-in capacity of 9.9 GW the company is well placed to achieve its targets well ahead of time. Around 1.7 GW of renewable energy projects are currently operational. The under-construction and in-pipeline portfolio is 2.63 GW and with the acquisition of Mytrah Energy’s 1.75 GW renewable energy assets the total renewable locked-in capacity of the company stands at 6.0 GW. JSW Energy has set an ambitious target for a 50 per cent reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.
Also Read: India’s initiatives to promote energy storage technologies
Project details
According to information available from SECI but not part of the JSW Energy release, the energy storage projects will be set up on BOOT (build, own, operate and transfer) basis. The BESS projects will be located in the vicinity of the Fategarh-III substations in Rajasthan and will be connected to the interstate transmission system (ISTS) network. It may be noted that the proposed BESS need not be charged through renewable energy sources alone, even conventional energy is permitted. The Battery Storage Purchase Agreement (BSPA), which is the equivalent of a power purchase agreement, will be signed between the developer and SECI. Land for the project will be made available by SECI within three months of the finalization of the BSPA.
Featured photograph (source: Fluence) is for representation only.
