JSW Energy Limited's step-down subsidiary, JSW Renew Energy Five Limited, has escalated its legal battle in a dispute related to Battery Energy Storage Systems Projects. The company has filed a Civil Appeal with the Supreme Court of India, challenging a recent order by the Appellate Tribunal for Electricity (APTEL).

Legal Proceedings Timeline

• CERC passes an initial order
• APTEL dismisses JSW Renew Energy Five's appeal against the CERC order
• JSW Renew Energy Five files a Civil Appeal in the Supreme Court

Details of the Appeal

The Civil Appeal specifically challenges the APTEL order that dismissed JSW Renew Energy Five's previous appeal against a decision made by the Central Electricity Regulatory Commission.

Project Background

The legal dispute centers around Battery Energy Storage Systems Projects from Solar Energy Corporation of India Limited (SECI). While specific details of the project and the points of contention are not disclosed, the persistent legal action suggests significant stakes for JSW Energy and its subsidiary in this matter.

Company's Disclosure

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, JSW Energy Limited informed the stock exchanges about this development. Monica Chopra, Company Secretary of JSW Energy Limited, signed the official disclosure.

Implications

This legal move by JSW Renew Energy Five Limited underscores the complexity and importance of regulatory matters in the renewable energy sector, particularly concerning battery storage projects. The outcome of this Supreme Court appeal could have significant implications for the company's operations and the broader regulatory framework for energy storage projects in India.

As the case progresses through the Supreme Court, stakeholders in the energy sector will likely be watching closely for any precedents that may be set regarding the regulation and implementation of battery energy storage systems in the country.

JSW Energy , through its wholly-owned subsidiary JSW Neo Energy Limited, has made a significant move in the renewable energy sector by signing a definitive agreement to acquire Tidong Power Generation Private Limited (TPGPL) from Statkraft IH Holding AS. This acquisition marks JSW Energy's fourth hydro asset, further solidifying its position as the largest private hydro power player in India.

Transaction Details

The enterprise value of the transaction is set at ₹1,728.00 crores, subject to closing adjustments. The deal includes a 150 MW under-construction hydro power project located in the Kinnaur district of Himachal Pradesh. This strategic acquisition aligns with JSW Energy's ambitious target of reaching 30 GW generation capacity by FY 2030.

Project Specifics

The Tidong hydro power plant is expected to be commissioned in October 2026. It comes with a 22-year Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Ltd for 75 MW capacity at a tariff of ₹5.57/KWh during the months of May to October. The remaining 75 MW capacity is currently untied and available for merchant market sales, providing flexibility in power distribution.

Regulatory Approvals and Timeline

The acquisition is subject to key approvals, including:

• Consent from the Government of Himachal Pradesh for the change in controlling shareholding
• Approvals from lenders

JSW Energy anticipates completing the acquisition by January 15, 2026, contingent on fulfilling the conditions outlined in the definitive agreements.

Impact on JSW Energy's Portfolio

Post-acquisition, JSW Energy's locked-in generation capacity will increase to 30.5 GW, with hydro capacity reaching 1.8 GW. This addition strengthens the company's renewable energy portfolio, supporting its goal of increasing the share of renewable energy generation to 70% by FY 2030.

Strategic Significance

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed enthusiasm about the acquisition, stating, "This acquisition further strengthens our position as the largest private hydro power player in India and reinforces our commitment to support India's power sector." He also highlighted the potential synergies with their existing Karcham-Wangtoo Hydro plant and the opportunity to leverage the expertise of the skilled manpower acquired through this deal for future pumped-hydro storage projects.

Seller's Perspective

Fernando de Lapuerta, Executive Vice President International at Statkraft, commented on the transaction, expressing confidence in JSW Energy's competence to develop and operate the Tidong hydropower plant, contributing to India's green energy transition.

Financial Advisors

The transaction involved several key advisors:

• Talwar Thakore & Associates served as legal advisors for JSW Neo Energy
• Grant Thornton conducted financial and tax due diligence
• Tractebel Engineering performed technical due diligence
• Ernst & Young acted as the sell-side M&A Banker
• Cyril Amarchand Mangaldas provided legal advice to Statkraft

This acquisition represents a significant step for JSW Energy in expanding its renewable energy footprint and advancing towards its sustainability goals in the Indian power sector.