JSW Energy’s Growth Continues With 85 MW Addition, But Curtailment Risks Loom

JSW Energy has recently commissioned 85 MW of renewable energy capacity, including 74 MW of solar capacity (part of the NHPC Hybrid Project) and 11 MW of wind capacity. This takes the company’s total installed capacity to 13,295 MW.

In a press release, JSW Energy stated that with the latest addition, the share of renewables in its overall capacity now stands at 57%, comprising 3,720 MW of wind, 2,286 MW of solar, and 1,631 MW of hydro capacity.

The company is rapidly adding gigawatt-scale capacity, rising from 13,097 MW in October to 13,295 MW in November this year. However, while ramping up capacity is progressing smoothly, transmission infrastructure remains a challenge. With potential curtailment issues ahead, the company anticipates a temporary slowdown.

Sharad Mahendra, Joint Managing Director and Chief Executive Officer (CEO), JSW Energy, said in an investor call that India has a bidding pipeline of close to 100 GW, including about 40 GW of projects for which PPAs are still pending.

He associated the changing bidding portfolio during the first half of the year (H1) with a sharp decline in standalone solar and wind tenders and a rise in hybrid and firm and dispatchable renewable energy (FDRE) projects. Solar-plus-battery energy storage tenders have taken the largest share, aimed at meeting energy demand during evening hours.

Mahendra added that the industry is witnessing a temporary slowdown as there is sufficient capacity already lined up for execution over the next three years, including both signed PPAs and unsigned bids.

He said, “We expect the overall bidding volume we have witnessed in the last two fiscals to be lower in the current year. But as I again said, this is temporary. Once the backlog starts coming down and connectivity visibility improves, this is expected to gain pace again — maybe from the next financial year.”

Current Capacity

JSW Energy currently has a total locked-in generation capacity of 30.5 GW, comprising 13.3 GW operational, 12.5 GW under construction across thermal and renewable projects, 150 MW of hydro under acquisition, and a pipeline of 4.6 GW.

The company also has 29.4 GWh of locked-in energy storage capacity, including 26.4 GWh from pumped hydro storage projects and 3.0 GWh from battery energy storage systems. The latest capacity addition brings JSW Energy closer to its target of 30 GW of generation capacity and 40 GWh of energy storage capacity by FY2030.

This latest capacity addition was achieved despite lower activity during the first half of the current year. Explaining the reason for the slowdown, Sharad Mahendra said that due to extended monsoons, both project initiation and execution were much slower.

He added, “In the second half of the year, the projects and capacity we have indicated — in excess of 15 GW — will bring us closer to adding about 2 GW more by year-end. Therefore, in terms of CAPEX, it will be higher than what was witnessed in H1.”