JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects
The tender was floated earlier this month
March 21, 2023
JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour discharge.
JSW Neo Energy won 300 MW by quoting ₹14.75 million (~$178,661), and Greenko bagged 700 MW by quoting ₹14.76 million (~$178,782) under the bucket-filling method. Greenko had quoted for 960 MW.
The starting price for the e-reverse auction was set as ₹14.88 million (~$180,235).
The tender was floated earlier this month.
PCKL will sign power purchase agreements (PPA) with the successful bidders, which will be valid for 40 years.
The projects must be commissioned within 36 months of signing the PPA. The projects can be located anywhere in Karnataka.
The minimum capacity for the first part of commissioning at one project site will be 50% of the allocated project capacity or 100 MW, whichever is lower. In the case of early part-commissioning, PCKL may procure the power at 75% of the annual fixed cost on a pro-rata basis.
If commissioning is delayed, the project’s performance bank guarantee will be encashed proportionate to the balance capacity not commissioned.
Developers must arrange connectivity to the nearest state transmission utility substation at their own cost.
Last month, the Ministry of Power proposed supporting pumped storage projects through concessional climate finance. Sovereign green bonds issued for mobilizing resources for green infrastructure may be deployed in developing these projects, which utilize renewable energy for charging.
The ministry has issued draft guidelines for pumped storage projects in the country. The guidelines seek to utilize the immense potential of pumped storage projects in grid stabilization and in meeting the peak power demand.
In August last year, JSW Renew Energy Five Limited, a special purpose vehicle of JSW Energy, had won Solar Energy Corporation of India’s auction to set up pilot projects of 500 MW/1000 MWh standalone battery energy storage systems under a build, own, operate, and transfer model. JSW Renew Energy Five had won the total capacity by quoting ₹1.08 million (~$13,566)/ MW/ month.
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