The Appellate Tribunal for Electricity (APTEL) has allowed an interest claim by JSW Energy subsidiary JSW Hydro Energy Limited, setting aside a prior Central Electricity Regulatory Commission (CERC) order.

The tribunal’s decision on September 18, 2026, permits the notional interest claim during construction on equity infused in excess of 30% during the construction phase. This claim was originally disallowed by CERC in its March 17, 2022 order regarding the truing-up of tariff for 2014-19 and determination of tariff for 2019-24.

Regulatory Outcome

APTEL remanded the matter to CERC to undertake a prudence check of the data submitted regarding the additional IDC. The tribunal held that carrying cost on such claim shall be reckoned from the date of filing of the true-up petition until its eventual adjustment.

JSW Energy disclosed this development under Regulation 30(4) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, classifying it as material litigation.

What the Numbers Show

The allowance of the IDC claim represents a reversal of a regulatory disallowance that had previously blocked recognition of returns on equity exceeding the 30% threshold. By mandating a prudence check rather than a final quantification, APTEL has shifted the burden of verification back to CERC while preserving the subsidiary's right to claim these costs. The inclusion of carrying costs from the filing date suggests potential compounding effects on the final adjusted amount, depending on the duration of the prudence review process.

JSW Energy has crossed the 15 GW installed capacity milestone, adding 1,572 MW in FY27. The company's total operational capacity now stands at 15,025 MW.

Capacity expansion highlights

The following table summarises the key capacity milestones reported by JSW Energy:

The 15 GW milestone represents a significant scale-up in JSW Energy's power generation portfolio. The addition of 1,572 MW in FY27 reflects the pace of capacity build-out the company has undertaken during the fiscal year. This growth was achieved in under six quarters after crossing 10 GW in March 2025, representing a CAGR of ~26%.

Portfolio composition

Renewable energy now constitutes over 60% (9,067 MW) of the company's operational portfolio. The breakdown includes:

• Wind: 3,125 MW
• Solar: 2,426 MW
• Hybrid: 1,735 MW
• Hydro: 1,781 MW

The thermal portfolio stands at 5,958 MW. The capacity added in FY27 to date comprises 1,272 MW of renewable energy capacity (including 593 MW solar, 108 MW wind, 420 MW hybrid, and 150 MW hydro) along with 300 MW of inorganic thermal capacity.

Growth trajectory and targets

JSW Energy remains on track to meet its greenfield capacity addition target of 3 GW for FY2027, having achieved approximately 42% of the target to date. The company has a total locked-in generation capacity of 32.4 GW, comprising 15.0 GW operational and 13.4 GW under construction across thermal, hydro, and renewables, along with a pipeline of 4.0 GW.

Locked-in energy storage capacity stands at 29.6 GWh, comprising 26.4 GWh of pumped hydro storage and 3.2 GWh of battery energy storage. The company is targeting 30 GW of generation capacity and 40 GWh of energy storage by 2030, and carbon neutrality by 2050.