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JSW Energy’s subsidiary JSW Energy (Utkal) received a Letter of Award (LoA) from Power Company of Karnataka Limited (PCKL) for a 400 MW power supply arrangement.
For context, 400 MW of power can supply year long electricity to 2.5 million homes, power a medium sized city, and become the backbone of urban electric supply.
JSW Energy, an arm of JSW group, is a full-service power provider that undertakes energy generation, transmission, and trading.
The deets: the coal requirements of this project will be sourced through Coal India Limited under SHAKTI scheme 2017.
The scheme provides a transparent corridor like auctions for power companies to acquire coal from the government.
Once the long term-deal of the project is signed then JSW Energy (Utkal) will have 57% of its capacity tied up with this project.
Why this matters: with this project, the company can expand its energy generation capacity and reach its stated goal of 30 GW by 2030.
Although there is a significant shift towards renewable sources of energy, coal’s market in India is steadily rising at the rate of 7.57% which will reach 1.5 billion tonnes by 2030. This will help major tech states like Karnataka maintain grid stability amid the irregular nature of solar and wind power.
Mordor Intelligence
