JSW Energy arm secures LoA for 700 MW ISTS-connected solar capacity from SJVN; stock up 2%

JSW Neo Energy Ltd, a wholly-owned subsidiary of JSW Energy Ltd, on Tuesday said it received a Letter of Award (LoA) for ISTS-connected solar capacity of 700 MW from SJVN Ltd. The LoA was against tariff-based competitive bid invited for setting up of 1,500 MW ISTS-connected solar power projects.

"Following the award of 700 MW capacity from SJVN Ltd, the Company's total locked-in capacity increases to 11.0 GW comprising of 1.4 GW of solar capacity. The project is required to supply power of full contracted capacity within 24 months from the effective date of PPA. JSW Energy has total locked-in generation capacity of 11.0 GW comprising of 7.2 GW operational, 2.6 GW under-construction across wind, thermal and hydro and LoAs for 1.2 GW capacity from SECI (Tranche - XVI) and SJVN," the company stated.

In addition, the company it said has 3.4 GWh of locked-in energy storage capacity by means of battery energy storage system and hydro pumped storage project.

"The firm expects to have 9.8 GW of operational generation capacity by CY2024, up from current operational capacity of 7.2 GW. It aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity by 2030. JSW Energy has set an ambitious target for 50% reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050," it further stated.

JSW Energy shares were up 1.66 per cent to hit a day high of Rs 532.70 in early trade.

Rupak De, Senior Technical Analyst at LKP Securities has given a 'Buy' call on the counter with a target price of Rs 570 per share. "Consider initiating a position within the range of Rs 520-525 and setting a stop loss at Rs 500 to mitigate downside risk. One can expect a potential upside target of Rs 570," De stated.

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