Shares of JSW Energy tumbled over 5% on January 6 after the Central Electricity Regulatory Commission (CERC) declined to approve the proposed tariff for the company’s battery energy storage project associated with Solar Energy Corporation of India Limited (SECI).
CERC, in its order dated January 2, 2025, mentioned that the proposed tariff was considerably higher compared to the rates discovered in recent market auctions. Further, the regulator noted that there was a delay in the signing of the Battery Energy Storage Purchase Agreement and the Battery Energy Storage Sale Agreement, thus making the tariff misaligned with prevailing market prices.
The project, for which LoA was issued on January 9, 2023, was said to be one of the entries of JSW Energy into energy storage. The company had quoted a fixed capacity charge of ₹10.8 lakh per MW a month for 12 years. SECI committed only up to 60% of project capacity while JSW Energy maintained the remaining 40%.
JSW Energy said it would appeal against the order passed by CERC. It added that JSW Energy is committed to its long-term strategy of transitioning into an energy solutions company, having made significant investments in renewable energy and energy storage.
Despite this setback, JSW Energy has not given up on its targets of achieving 10 GW of generation capacity by 2025 and 20 GW by 2030. It also aims at a 50% reduction in carbon emissions by 2030 and Carbon Neutrality by 2050.
While the recent rejection of the tariff proposal may weigh on near-term investor sentiment, the strong focus on sustainability and future growth in renewable energy positions the company for long-term potential.
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Source: Moneycontrol
News Desk
