JSW Thermal Energy Two Limited, a wholly owned subsidiary of JSW Energy Limited, has signed a long-term Power Purchase Agreement (PPA) with the West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the development of a new 1,600 MW thermal power project at Salboni in West Bengal. The greenfield project, comprising two units of 800 MW each, is expected to be commissioned over a period of six years.
The proposed plant will deploy supercritical or ultra-supercritical technology and will supply electricity to the state under the terms of the PPA.
Project Award and Coal Supply Arrangements
The project was awarded through a competitive bidding process conducted by WBSEDCL. It will be fuelled by domestic coal linkage allocated to the state under the SHAKTI B (iv) policy framework. This marks JSW Energy’s second power supply agreement with WBSEDCL, following the signing of a similar 1,600 MW PPA in March 2025.
With this latest agreement, JSW Energy’s total planned capacity at the Salboni site increases to 3,200 MW.
Expanding Thermal and Energy Storage Portfolio
JSW Energy currently operates 5,658 MW of thermal power capacity. With 3,200 MW under development at Salboni and an option to add up to 1,800 MW at the KSK Mahanadi facility, the company’s total thermal capacity is projected to rise to 10,658 MW. Importantly, all incremental thermal capacity will be based on domestic coal.
Overall, JSW Energy has secured a 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 power capacity under acquisition, and a development pipeline of 4.6 GW.
In addition, the company has locked in 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.
JSW Energy has set ambitious long-term targets of achieving 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, while aiming to become carbon neutral by 2050.
Management Commentary
Commenting on the development, Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said that the signing of the second 1,600 MW PPA with WBSEDCL significantly strengthens the company’s presence at Salboni, making it its largest single-location asset.
He highlighted that the project’s proximity to coal blocks and synergies with the existing 1,600 MW unit under construction are expected to deliver meaningful operational efficiencies. He added that the project underscores JSW Energy’s commitment to supporting India’s energy security through the supply of reliable and cost-effective power, while continuing to build scalable energy assets that generate long-term value for stakeholders.
Summary
JSW Thermal Energy Two Limited has signed a PPA with WBSEDCL to develop a 1,600 MW thermal power project at Salboni, West Bengal, taking JSW Energy’s total planned capacity at the site to 3,200 MW. Awarded through competitive bidding and backed by domestic coal linkage, the project strengthens the company’s thermal portfolio and supports its long-term targets of expanding generation and energy storage capacity while ensuring energy security.
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