Power Generation Company Signs PHSPPA for 1,500 MW / 12,000 MWh PSP with Uttar Pradesh Power Corporation Ltd
The stock is up by 16 per cent from its 52-week low of Rs 419.10 per share.
JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has signed a Pumped Hydro Storage Power Procurement Agreement (PHSPPA) with Uttar Pradesh Power Corporation Ltd (UPPCL) for the procurement of 1,500 MW / 12,000 MWh of pumped hydro energy storage.
The PHSPPA is for the supply of energy storage capacity for 40 years, where the company will be entitled to receive a fixed capacity charge of Rs 77.2 lakh per MW per annum. The aforesaid project, located at Sonbhadra district, Uttar Pradesh, will be capable of a scheduled discharge of 8 hours (with a maximum continuous 6 hours) per day. The project is expected to be commissioned in the next 6 years.
Subsequent to this, the Company's total locked-in energy storage capacity now stands at 28.3 GWh, which includes 26.4 GWh of PSP. The Company is well-positioned to achieve its target of 40 GWh of energy storage by 2030.
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About JSW Energy Ltd
JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USD 24 billion JSW Group, which has a significant presence in sectors such as steel, energy, infrastructure, cement, and sports, among others. JSW Energy Ltd has established its presence across the value chains of the power sector with diversified assets in power generation and transmission. With strong operations, robust corporate governance and prudent capital allocation strategies, JSW Energy continues to deliver sustainable growth and create value for all stakeholders. JSW Energy began commercial operations in 2000 with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka.
The company has a market cap of over Rs 80,000 crore and has been maintaining a healthy dividend payout of 20.1 per cent. As of March 2025, the Life Insurance Corporation of India (LIC) owns a 6.57 per cent stake. The stock is up by 16 per cent from its 52-week low of Rs 419.10 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.