JSW Neo Energy and Greenko KA 01 IREP have been awarded the contract by the Power Company of Karnataka (PCKL) to supply 1 GW of energy for eight hours a day from pumped hydro storage projects, with five hours of continuous discharge.
JSW Neo Energy won 300 MW by quoting INR 147.5 crore, while Greenko won 700 MW by quoting INR 147.6 crore, from an initial price of INR 148.8 crore for the e-reverse auction. The companies will sign power purchase agreements valid for 40 years, and the projects are to be commissioned within 36 months of the signing of the PPA. Developers will bear the cost of connecting their projects to the nearest state transmission utility substation.
The auction required the minimum capacity for the first phase of commissioning at a single project site to be 50% of the allocated project capacity or 100 MW, whichever is lower. In the case of early part-commissioning, PCKL will purchase power at 75% of the annual fixed cost on a pro-rata basis. If the commissioning is delayed, the project’s performance bank guarantee will be encashed proportionately to the balance capacity not commissioned.
The ministry also issued draft guidelines for pumped storage projects in the country, aimed at utilizing their potential for grid stabilization and peak power demand.
