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JSW Neo Energy Secures 1,500 MW Pumped Hydro Storage Contract with UPPCL

JSW Neo Energy, a JSW Energy subsidiary, has signed a 40-year power procurement agreement with Uttar Pradesh Power Corporation Ltd. (UPPCL) to supply 1,500 MW/12,000 MWh of pumped hydro energy storage. The project, to be developed in Sonbhadra district, will enable scheduled discharges for up to eight hours daily, with a maximum of six continuous hours. JSW will earn a fixed capacity charge of Rs77.2 lakh per MW per year.

The plant is expected to be commissioned within six years. With this addition, JSW’s committed energy storage portfolio now totals 28.3 GWh, including 26.4 GWh from pumped hydro, keeping the company on track to meet its 40 GWh storage capacity goal by 2030.

In a similar development, Adani Green Energy secured a contract for a 1,250 MW pumped storage project, also in Sonbhadra, under the same tender and timeline.

These developments follow the Ministry of Power’s release of tariff-based bidding guidelines and a Rs12,460 crore budgetary support package for hydro and pumped storage projects. India’s National Electricity Plan projects a need for 74 GW/411 GWh of energy storage by 2032, including 27 GW/175 GWh from pumped hydro, making such projects critical to grid stability and renewable integration.