Synopsis

JSW Neo Energy has partnered with Bhutan's Druk Green Power Corporation to jointly develop the 920-MW Punatsangchhu-III hydroelectric project in Bhutan. This venture marks JSW Energy's first power generation project outside India.

JSW Energy

New Delhi: JSW Energy on Wednesday said its arm JSW Neo has inked a pact with Bhutan's utility Druk Green Power Corporation to jointly develop the 920-MW Punatsangchhu-III hydroelectric project in Bhutan.

The project will be developed through a joint venture company in which Druk Green Power Corporation (DGPC) will hold a 51 per cent stake and JSW Neo Energy will hold 49 per cent, a company statement said.

This marks the company's first power generation venture outside India, it said, adding that the agreement was signed in the presence of the Prime Minister of Bhutan.

According to the statement, JSW Energy on Wednesday announced the signing of a shareholders' agreement with DGPC, a wholly-owned subsidiary of Druk Holding & Investments - the commercial arm of the Royal Government of Bhutan, for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang District, Bhutan.

Also read | India's power demand seen rising 6.5-7.5% this fiscal as hotter, drier weather boosts cooling needs: Crisil

DGPC and JSW Neo are jointly preparing the detailed project report.

Bhutan is among the world's few carbon-negative countries, with a power system built entirely on clean hydropower and being expanded to other renewables such as solar.

The country's Himalayan river systems offer substantial untapped hydroelectric potential.

Bhutan has a long-established record of developing and operating large hydro assets, mostly in partnership with India, a relationship that exemplifies the excellent bilateral cooperation between the two countries.

DGPC, as Bhutan's generation utility, brings decades of design engineering, development, and operating expertise across the country's hydropower assets to the partnership.

Also read | India's peak power demand rises 12% in April-June, evening supply gap widens to 3,045 MW: Govt

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said, "We are privileged to partner with Druk Green Power Corporation on Punatsangchhu-III, our first power generation venture outside India, bringing together two organisations with deep experience in developing and operating large hydroelectric assets in Himalayan terrain".

The company has a total locked-in generation capacity of 32.4 GW, comprising 14.9 GW operational and 13.5 GW under construction across thermal, hydro and renewables, and a pipeline of 4 GW.

In hydro, the company has an operating portfolio of 1,781 MW and is the largest private hydropower generator in India.

It also has 29.6 GWh of locked-in energy storage capacity, comprising 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage systems. JSW Energy aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, and to achieve carbon neutrality by 2050. PTI