JSW Energy Unit Signs 25-Year Pact to Supply 400 MW Power to Karnataka Discoms

JSW Energy Ltd has expanded its long-term power portfolio with a fresh agreement to supply 400 megawatts (MW) of electricity to distribution companies (discoms) in the state of Karnataka.

The company announced on Friday that its subsidiary, JSW Energy (Utkal) Ltd, has signed a 25-year Power Purchase Agreement (PPA) at a tariff of ₹5.78 per kilowatt-hour (kWh). Supply under this pact is expected to be serviced by the Utkal thermal power plant and will commence on April 1, 2026.

Revenue visibility boosts stock

The deal significantly de-risks the company's operational profile. With this agreement, JSW Energy has reduced its open or unsold capacity to just 5% of its current operational base, down from approximately 8%. This shift improves long-term revenue visibility and lowers exposure to volatile short-term merchant power markets.

Investors reacted positively to the stability offered by the contract. JSW Energy's stock rallied up to 5% in intra-day trading on Friday following the announcement.

Capacity and storage expansion

The company’s total locked-in generation capacity has now risen to 30.5 gigawatts (GW). This portfolio includes:

• 13.3 GW currently in operation.
• 12.4 GW under construction across thermal and renewable projects.
• 150 MW of hydro assets under acquisition.
• 4.6 GW in the development pipeline.

Beyond generation, the JSW Group subsidiary has secured 29.4 gigawatt-hours (GWh) of energy storage capacity. This includes 26.4 GWh from pumped hydro projects and an additional 3 GWh from battery storage systems—critical assets for stabilizing India's grid as renewable energy penetration deepens.

Strategic roadmap

JSW Energy reiterated its ‘Strategy 2.0’ targets: building 30 GW of generation capacity and 40 GWh of energy storage by FY2030. The company also remains focused on achieving carbon neutrality by 2050.

Part of the $23 billion JSW Group, the firm is currently constructing 12.4 GW worth of projects, reinforcing its ambition to emerge as a dominant private-sector player in India’s evolving energy landscape.

Brief Summary

JSW Energy (Utkal) has signed a 25-year Power Purchase Agreement to supply 400 MW of power to Karnataka’s discoms at ₹5.78/kWh starting April 2026. The deal reduces the company’s unsold capacity to just 5%, boosting revenue stability and driving a 5% rally in its stock price. The company’s total locked-in capacity now stands at 30.5 GW as it pursues ambitious 2030 growth targets.

Frequently Asked Questions (FAQs)

Q1: What are the key terms of the new agreement?

JSW Energy’s subsidiary has signed a 25-year Power Purchase Agreement (PPA) to supply 400 MW of electricity to Karnataka distribution companies. The tariff is set at ₹5.78 per kWh, with supply starting on April 1, 2026.

Q2: How does this impact investors?

The deal reduces ‘open capacity’ (unsold power) from 8% to 5%. This provides predictable, long-term cash flow and protects the company from price volatility in the short-term spot market. Investors welcomed this stability, pushing the stock up 5%.

Q3: What is JSW Energy’s total capacity?

The company’s total locked-in capacity stands at 30.5 GW. This includes operational plants, projects under construction, and a development pipeline across thermal, hydro, and renewable sectors.

Q4: What is the company's energy storage strategy?

JSW Energy has secured 29.4 GWh of energy storage capacity, largely through pumped hydro projects (26.4 GWh) and battery systems (3 GWh), to support grid stability.

Q5: What are the long-term goals?

The company aims to achieve 30 GW of generation capacity and 40 GWh of energy storage by FY2030, with a broader goal of reaching carbon neutrality by 2050.