JSW Energy PSP Two, a subsidiary of JSW Energy, has signed an Energy Storage Facility Agreement (ESFA) with the Maharashtra State Electricity Distribution Company (MSEDCL) for a pumped hydro energy storage project with a capacity of 1,500 MW/12,000 MWh. This agreement comes after a letter of intent was issued on October 1, 2024.

The 40-year agreement stipulates that JSW Energy will receive a fixed capacity charge of Rs 8.466 million per MW per year. The Bhavali Pumped Hydro Project, located in the Nashik and Thane districts of Maharashtra, will offer an 8-hour discharge capacity with a maximum of 5 continuous hours of discharge. The project is expected to be commissioned within 48 months.

This initiative is projected to create direct employment for 3,000 individuals and contribute to local infrastructure, including roads, irrigation, sanitation systems, and educational facilities, as part of the company's Corporate Environmental Responsibility initiatives. According to India’s National Electricity Plan, the country’s hydro pumped storage capacity is expected to reach 27 GW by FY2032, while battery energy storage is anticipated to reach 47 GW. JSW Energy’s pumped hydro project is expected to play a crucial role in achieving these targets.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed excitement about signing the first energy storage facility agreement for a pumped hydro storage plant, viewing it as a significant milestone in their journey toward becoming an energy products and services company. He stated that by integrating advanced energy storage solutions, the project will not only enhance grid stability but also contribute to local area development.

JSW Energy aims to achieve 40 GWh of energy storage by 2030, having already secured 16.2 GWh. The company’s total locked-in generation capacity is 18.2 GW, which includes 7.7 GW of operational capacity and a renewable energy pipeline of 8.3 GW. They are targeting a generation capacity of 20 GW by 2030 and have set a goal of becoming carbon neutral by 2050.