JSW Neo Energy Ltd, a subsidiary of JSW Energy, has signed an agreement with the Uttar Pradesh Power Corporation Ltd (UPPCL) for the procurement of 1,500 MW / 12,000 MWh pumped hydro energy storage. The project, located in Sonbhadra district, Uttar Pradesh, will be capable of a scheduled discharge of 8 hours (with maximum continuous 6 hours) per day.

The contract states that the company will receive a fixed capacity charge of Rs 77.2 lakh per MW per annum in return for supply of energy storage capacity for a period of 40 years. The project is expected to be commissioned in the next 6 years and will not only increase the company’s energy storage capacity from 26.4 GWh to 28.3 GWh of PSP but also keep it on track to achieve its target of 40 GWh of energy storage by 2030.