JSW Energy Limited, one of India's leading private sector power producers and part of the USD 23 billion JSW Group, has reached a new milestone by signing its first Power Purchase Agreement (PPA) for a Firm and Dispatchable Renewable Energy (FDRE) project with Solar Energy Corporation of India (SECI). The PPA is for a 230 MW Inter-State Transmission System (ISTS)-connected project under SECI–FDRE Tranche IV and is a significant stride toward the company’s long-term strategy in renewable energy.

This development was disclosed by the company in an official regulatory filing dated July 25, 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The agreement was signed through JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited.

Key Highlights of the PPA

• Capacity: 230 MW (ISTS-connected Firm and Dispatchable Renewable Energy)

• Tariff: ₹4.98 per kWh

• Duration: 25 years

• Scheme: SECI–FDRE Tranche IV

This is JSW Neo Energy’s first PPA under the FDRE category, designed to supply firm, dispatchable renewable energy round-the-clock, rather than the intermittent power traditionally associated with solar or wind projects. This type of energy contract is crucial for grid stability, reliable supply, and flexibility in demand-supply matching, making it a vital component in India’s energy transition.

Strategic Importance of the FDRE Deal

The agreement represents a paradigm shift in renewable energy contracting in India, moving beyond traditional Power Purchase Agreements that often face curtailment risks due to variability. With the FDRE mechanism, JSW Energy will supply energy that can be dispatched based on real-time demand, enhancing grid resilience.

According to the company’s statement, this contract underscores JSW Energy’s commitment to developing advanced and tailored energy solutions that can cater to dynamic demand profiles. The firm nature of energy delivery supported by storage and hybrid solutions ensures reliability and compliance with evolving regulatory norms.

Boost to JSW Energy’s Capacity Portfolio

This project enhances JSW Energy’s under-construction capacity to 12.9 GW, aligning with the company’s 2030 vision of achieving 30 GW of total installed generation capacity and 40 GWh of energy storage. The company's locked-in generation capacity now stands at 30.2 GW, marking significant progress toward this ambitious goal.

With an existing operational capacity of 12.8 GW, JSW Energy continues to diversify its energy portfolio across thermal, hydro, solar, wind, and hybrid projects, further reinforcing its leadership in clean and flexible power generation.

Quote from Leadership

Mr. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed pride in this key development:

“We are proud to announce the signing of our first Power Purchase Agreement for a load-following Firm and Dispatchable Renewable Energy project. This milestone underscores JSW Energy’s commitment to provide advanced and tailored energy solutions that address the dynamic requirements of our offtakers. With this project, we are strengthening our energy products and services offering while supporting the country’s energy transition goals.”

About JSW Energy Limited

JSW Energy Limited is a major power player in India with a presence across the entire value chain of the power sector, including generation and transmission. It is a key part of the diversified JSW Group, which has interests in steel, energy, infrastructure, cement, and sports.

JSW Energy’s journey began in 2000 with the commissioning of its first 2x130 MW thermal power plant in Vijayanagar, Karnataka. Since then, it has grown significantly, developing projects across multiple states and integrating renewable energy sources into its operations.

The company focuses on sustainable growth, leveraging robust corporate governance, prudent capital allocation, and strategic project selection to ensure long-term value creation. Its move into FDRE represents the next evolution in its commitment to providing reliable, sustainable, and flexible energy solutions.

The SECI–FDRE Tranche IV Scheme

The Firm and Dispatchable Renewable Energy (FDRE) initiative launched by SECI is aimed at attracting developers who can combine renewable energy generation with storage to offer power that mimics the reliability of conventional sources. Tranche IV of this initiative is part of the government's broader push to encourage flexible power supply as India increases its reliance on renewable sources.

By securing a contract under this scheme, JSW Energy joins a growing list of developers offering “round-the-clock” (RTC) power or dispatchable solutions, which are seen as critical to integrating high levels of renewables into the grid.

Forward-Looking Strategy and Market Position

JSW Energy's transition strategy aims to:

• Reach 30 GW installed generation capacity by 2030

• Achieve 40 GWh of energy storage capacity, enabling FDRE and RTC capabilities

• Expand into hybrid solutions, combining wind, solar, hydro, and battery storage

• Enhance its position as a leader in the energy transition space

With the inclusion of dispatchable and hybrid energy solutions, JSW is adapting to a market that increasingly demands flexibility, reliability, and sustainability from power providers.

Investor Outlook and Stakeholder Confidence

The signing of this PPA comes at a time when investors are actively looking toward clean energy companies with the potential for scalable, sustainable, and secure earnings. Given the 25-year tenure of the PPA at a fixed tariff, it offers stable cash flows, which is critical for improving the company's debt servicing and long-term credit profile.

Moreover, the move into FDRE indicates maturity in business modeling and a deep understanding of market needs, giving JSW Energy a competitive advantage in future bidding and investment rounds.

Conclusion

The signing of the 230 MW FDRE Power Purchase Agreement with SECI by JSW Neo Energy is a landmark achievement for JSW Energy Limited. It not only showcases the company’s technical and financial capabilities but also reflects its proactive approach in aligning with India’s renewable and energy security goals.

As India moves aggressively toward achieving its 500 GW non-fossil fuel capacity target by 2030, companies like JSW Energy will play a pivotal role in bridging the gap between renewable intermittency and power reliability.

This PPA, with its firm and dispatchable structure, lays the groundwork for future-ready energy infrastructure, and positions JSW Energy as a trusted partner in India’s green energy revolution.

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