JSW Energy Signs 25-Year Pact to Supply 400 MW to Karnataka Discoms

Economic Times
Economic Times
3h ago • 1 views
JSW Energy’s subsidiary signed a 25-year PPA to supply 400 MW to Karnataka discoms from April 2026, enhancing revenue visibility and advancing its 2030 capacity and carbon neutrality goals.
JSW Energy Signs 25-Year Pact to Supply 400 MW to Karnataka Discoms
A What happened
JSW Energy’s subsidiary, JSW Energy Utkal Ltd, formalized a long-term Power Purchase Agreement with Karnataka discoms to supply 400 MW of power beginning April 2026 for 25 years at a tariff of Rs 5.78 per kWh. This contract reduces JSW Energy's uncontracted capacity to 5% of its operational capacity, enhancing revenue certainty. The firm’s comprehensive generation portfolio includes 13.3 GW operational, 12.4 GW under construction, 150 MW acquisition, and a 4.6 GW development pipeline. Energy storage assets include 29.4 GWh locked capacity through hydro pumped storage and batteries. The company remains on track for its 2030 goals of 30 GW power generation capacity, 40 GWh energy storage, and carbon neutrality by 2050.
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Key insights

  • 1

    Long-term power supply secured: The 25-year PPA ensures stable revenue and reduces capacity risk for JSW Energy.

  • 2

    Moderate tariff contract: The agreed tariff of Rs 5.78 per kWh reflects competitive pricing for a long tenure.

  • 3

    Expanding generation portfolio: JSW Energy’s 30.5 GW locked-in capacity includes operational and upcoming projects across thermal and renewable sources.

  • 4

    Significant energy storage assets: The company’s storage capacity of 29.4 GWh supports grid stability and integration of renewable energy.

  • 5

    Carbon neutrality goal by 2050: JSW Energy’s strategic plan includes achieving carbon neutrality with expanded capacity and storage by mid-century.

Takeaways

JSW Energy’s long-term supply agreement with Karnataka discoms is a significant milestone in its growth strategy, providing revenue certainty and supporting its transition to a larger, low-carbon power portfolio.

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