Shares of JSW Energy and SJVN, formerly known as Satluj Jal Vidyut Nigam, rallied more than 4% in early trade on Tuesday after they inked a pact for a solar project. JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy, has bagged an order from SJVN for setting up 700 MW inter-state transmission system (ISTS)-connected solar power projects. In a separate development, SJVN Green Energy, a subsidiary of SJVN, has signed a power usage agreement (PUA) with Jammu & Kashmir Power Corporation Limited (JKPCL) for 300 MW solar power capacity.

Reacting to the news, shares of JSW Energy rose as much as 1.6% to ₹532.70 after opening higher at ₹525.50 against the previous closing price of ₹524 on the BSE.

In a similar trend, SJVN shares climbed 4.3% to hit a high of ₹125.25 on the BSE. Early today, the PSU stock opened higher at ₹121.45 against Monday closing price of ₹120.10.

In a post market hour, JSW Energy in an exchange filing said, “JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has received Letter of Award (LoA) for ISTS-connected solar capacity of 700 MW from SJVN Limited, 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 , the company's total locked-in capacity increases to 11 GW comprising 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 the power purchase agreement, as per the release.

JSW Energy, which has a significant presence in sectors such as steel, energy, infrastructure, and cement, has set an ambitious target for 50% reduction in carbon footprint by 2030 and to achieve carbon neutrality by 2050.

The company, a part of Sajjan Jindal-led JSW Group, has total locked-in generation capacity of 11 GW, comprising 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. In addition, the company has 3.4 GWh of locked-in energy storage capacity using a battery energy storage system and hydro-pumped storage project.

JSW Energy expects to have 9.8 GW of operational generation capacity by CY2024, up from the current operational capacity of 7.2 GW. The company aims to reach 20 GW of generation capacity and 40 GWh of energy storage capacity by 2030.

Meanwhile, SJVN in a separate exchange filing said the wholly owned subsidiary of the company, SJVN Green Energy Limited (SGEL), has entered into a power usage agreement with JKPCL at Jammu on February 23, 2024, for 300 MW solar power capacity.

This 300 MW power will be supplied to JKPCL from the under-construction 1,000 MW Bikaner solar project, which is being developed under the CPSU Scheme of IREDA at a cost of ₹5,491 crore. The project is being developed under the Domestic Content Requirement (DCR) mode and is slated for commissioning by July 2024.

“The company is on rapid progression to achieve its Shared Vision of 25,000 MW by 2030 & 50,000 MW by 2040. This Shared Vision has been formulated in sync with the commitment of the Government of India of generating 50% energy from non-fossil fuel-based energy resources by 2030,” SJVN said in the exchange filing.

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