JSW Neo Energy, a subsidiary of JSW Energy, has signed a long-term pumped hydro storage power procurement agreement (PHSPPA) with the Uttar Pradesh Power Corporation (UPPCL). The agreement is for the supply of 1,500 MW/12,000 MWh of pumped hydro energy storage.

The agreement spans 40 years, with JSW Neo Energy entitled to receive a fixed capacity charge of Rs 77.2 lakh per MW per annum. The project will be established in the Sonbhadra district of Uttar Pradesh, and is designed to provide scheduled energy discharge of up to eight hours per day, with a maximum of six continuous hours. It is expected to be commissioned within the next six years.

With this agreement, JSW’s total committed energy storage capacity has increased to 28.3 GWh, of which 26.4 GWh is from pumped storage projects (PSP). The company is actively working towards its strategic target of achieving 40 GWh of energy storage capacity by 2030. It reflects growing utility interest in pumped hydro storage as a reliable and cost-effective solution for managing peak demand and integrating renewable energy.