JSW Energy announced the commencement of construction for its Battery Energy Storage Project (BESS), marking its entry into the energy storage sector. This project represents a significant advancement for JSW Energy, positioning it as a key player in the evolving energy storage market in India.
Battery energy storage systems (BESS) are essential for capturing and storing energy generated from renewable sources like solar and wind, and releasing it when demand is high. The project awarded by the Solar Energy Corporation of India Limited (SECI) entails a 1.0 GWh battery storage system with commissioning expected by June 2025. It includes two installations, each with a 500 MWh capacity, designed for two-hour storage cycles. The project will follow a Build Own Operate and Transfer (BOOT) model, with ownership transferring to the offtaker after 12 years.
In parallel to its battery storage initiatives, JSW Energy is making strides in green hydrogen and green steel sectors. The company is developing a commercial-scale green hydrogen project in India and has secured a seven-year supply agreement with JSW Steel Ltd for 3,800 tons of green hydrogen annually, along with associated green oxygen. The detailed engineering and equipment procurement for this project are complete, with commissioning slated for the fourth quarter of 2024-25.
Further expanding its green hydrogen capabilities, JSW Energy has been allocated a capacity of 6,800 tons per annum under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program by SECI. Additionally, a Memorandum of Understanding (MoU) with JSW Steel Ltd aims to supply an additional 85,000 to 90,000 tons of green hydrogen and 720,000 tons of green oxygen annually by 2030.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, highlighted the strategic importance of the BESS project, stating, 'Our Battery Energy Storage System project represents a crucial advancement in enhancing grid stability and integrating renewable energy sources, further solidifying our leadership in innovative energy solutions.' This project underscores JSW Energy's commitment to advancing India’s energy infrastructure and supporting the country's renewable energy goals.
JSW Energy Ltd, a leading private sector power producer in India and a part of the USD 23 billion JSW Group, currently boasts a total generation capacity of 13.3 GW. This includes 7.3 GW operational capacity, 2.6 GW under construction across wind, thermal, and hydro projects, and a 3.4 GW development pipeline. The company also has 3.4 GWh of committed energy storage capacity through its BESS and hydro pumped storage projects. Looking forward, JSW Energy aims to achieve a generation capacity of 20 GW and an energy storage capacity of 40 GWh by 2030, with an ambitious goal of reaching carbon neutrality by 2050.
India’s broader energy objectives, outlined at the COP26 summit in 2021, include an ambitious five-part 'Panchamrit' pledge. This encompasses reaching 500 GW of non-fossil electricity capacity, sourcing half of its energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. Additionally, India aims to reduce the emissions intensity of its GDP by 45% and achieve net-zero emissions by 2070.
JSW Energy’s endeavors in battery storage and green hydrogen align with these national goals, contributing significantly to India’s transition toward a sustainable and resilient energy future.