JSW Energy Doubles Salboni Project to 3,200 MW with New PPA

Introduction to the Agreement

JSW Energy, through its wholly-owned subsidiary JSW Thermal Energy Two Limited, has secured a second Power Purchase Agreement (PPA) with the West Bengal State Electricity Distribution Company Limited (WBSEDCL). The agreement facilitates the development of a new 1,600 MW thermal power project in Salboni, West Bengal. This move effectively doubles the company's planned capacity at the site to 3,200 MW, marking a significant expansion of its operations in Eastern India and reinforcing its commitment to the country's energy sector.

Project Specifications and Timeline

The new greenfield project will consist of two 800 MW units, employing advanced super or ultra-supercritical technology for higher efficiency. The plant is scheduled to be commissioned within a six-year timeframe from the signing of the agreement. This PPA was awarded following a competitive bidding process conducted by WBSEDCL. It mirrors a previous agreement for a 1,600 MW capacity plant signed in March 2025, solidifying a long-term partnership between JSW Energy and the state's power distribution company.

Strategic Importance and Fuel Security

With this expansion, the Salboni site is set to become JSW Energy's largest single-location asset. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, noted the project's strategic advantages. He stated, "This makes Salboni our largest single-location asset and reinforces our commitment to India’s energy security through the supply of reliable and affordable power." The project benefits from its proximity to coal blocks and will achieve operational synergies with the existing 1,600 MW unit already under construction. The plant will operate on domestic linkage coal allocated to West Bengal under the SHAKTI B (iv) policy, ensuring a stable and secure fuel supply.

Impact on JSW Energy's Portfolio

The agreement significantly strengthens JSW Energy's thermal power portfolio. The company currently operates 5,658 MW of thermal capacity. The addition of 3,200 MW under construction at Salboni, combined with an option to add another 1,800 MW at the KSK Mahanadi facility, will increase its total potential thermal capacity to 10,658 MW. All of this new capacity is planned to be fueled by domestic coal, aligning with national goals for energy self-reliance.

Broader Company Vision and Long-Term Goals

This project is a key part of JSW Energy's broader growth strategy. The company has a total locked-in generation portfolio of 32.1 GW. This includes 13.3 GW of operational capacity, 14 GW under construction across thermal and renewable assets, 150 MW of hydro capacity under acquisition, and a development pipeline of 4.6 GW. In addition to generation, JSW Energy has secured 29.4 GWh of energy storage capacity, comprising 26.4 GWh from hydro pumped storage projects and 3.0 GWh from battery energy storage systems. These initiatives support the company's ambitious targets to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, while aiming for carbon neutrality by 2050.

Investment and Economic Outlook

The total investment for the combined 3,200 MW project at Salboni is estimated at approximately ₹40,000 crore. This substantial capital commitment represents one of the largest private-sector investments in West Bengal's power sector. The project is expected to stimulate economic activity in the region, creating employment opportunities and supporting industrial growth. The development underscores JSW Energy's confidence in India's rising energy demand and its role in meeting the country's baseload power requirements.

Conclusion

The signing of the second PPA for the Salboni thermal power project is a pivotal development for JSW Energy. It not only expands the company's generation footprint in a strategic region but also enhances its portfolio with efficient, large-scale assets. By leveraging domestic resources and advanced technology, JSW Energy is positioning itself to play a crucial role in powering India's economic growth while progressing towards its long-term sustainability objectives.