Shares of JSW Energy and SJVN surged over 4% during early trading following their agreement to collaborate on a solar project. JSW Neo Energy Limited, a subsidiary of JSW Energy, secured a contract from SJVN to establish 700 MW inter-state transmission system (ISTS)-connected solar power projects. Additionally, SJVN Green Energy, a subsidiary of SJVN, entered into a power usage agreement (PUA) with Jammu & Kashmir Power Corporation Limited (JKPCL) for a 300 MW solar power capacity.

In response to the announcement, JSW Energy shares saw an increase of up to 1.6%, reaching Rs 532.70 after starting the day higher at Rs 525.50 compared to the previous day's closing of Rs 524 on the BSE. Similarly, SJVN shares experienced a surge of 4.3%, reaching a peak of Rs 125.25 on the BSE. Earlier in the day, the PSU stock opened at Rs 121.45, up from Monday's closing price of Rs 120.10. JSW Energy in an exchange filing said, "JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has received a Letter of Award (LoA) for ISTS-connected solar capacity of 700 MW from SJVN Limited, against Tariff based Competitive Bid invited for setting up of 1,500 MW ISTS-connected Solar Power Projects".

After securing the 700 MW capacity from SJVN, JSW Energy's total locked-in capacity now stands at 11 GW, including 1.4 GW of solar capacity. According to the statement, the project must deliver power at its full contracted capacity within 24 months from the effective date of the power purchase agreement. JSW Energy, with substantial operations in steel, energy, infrastructure, and cement sectors, has set an ambitious goal to reduce its carbon footprint by 50% by 2030 and attain carbon neutrality by 2050.

As a member of the Sajjan Jindal-led JSW Group, the company possesses a total locked-in generation capacity of 11 GW. This includes 7.2 GW already operational, 2.6 GW under construction in wind, thermal, and hydro sectors, and Letters of Award (LoAs) for 1.2 GW capacity from SECI (tranche - XVI) and SJVN. Furthermore, the company has secured 3.4 GWh of locked-in energy storage capacity through a combination of battery energy storage systems and hydro-pumped storage projects.

JSW Energy anticipates its operational generation capacity to increase to 9.8 GW by CY2024, a rise from the current 7.2 GW. The company targets achieving a generation capacity of 20 GW and an energy storage capacity of 40 GWh by 2030. Meanwhile, in a distinct exchange filing, SJVN announced that its wholly owned subsidiary, SJVN Green Energy Limited (SGEL), has finalized a power usage agreement with JKPCL in Jammu on February 23, 2024, for a solar power capacity of 300 MW.

The 300 MW of power will be sourced from the forthcoming 1,000 MW Bikaner solar project, which is currently under construction. This project is being developed under the CPSU Scheme of IREDA at a cost of Rs 5,491 crore. Operating under the Domestic Content Requirement (DCR) mode, the project is scheduled for commissioning by July 2024. "The company is on rapid progression to achieve its Shared Vision of 25,000 MW by 2030 & 50,000 MW by 2040. This Shared Vision has been formulated in sync with the commitment of the Government of India of generating 50 percent energy from non-fossil fuel-based energy resources by 2030", SJVN said in the exchange filing.