JSW Energy Boosts Hydro Capacity with Kutehr Project

JSW Energy has commissioned the second 80 MW unit of its 240 MW Kutehr hydroelectric project in Himachal Pradesh, advancing India’s renewable energy goals.

On 6 August 2025, JSW Energy announced the commissioning of the second 80 MW unit of its 240 MW (3x80 MW) Kutehr hydroelectric power plant in Chamba district, Himachal Pradesh, bringing the project’s operational capacity to 160 MW. The first unit was commissioned on 4 August, and the final unit is expected to be operational soon. The project, one of India’s fastest-built greenfield hydro initiatives, has begun supplying power to Haryana under a 35-year power purchase agreement (PPA) with the Haryana Power Purchase Centre (HPPC) at a tariff of ₹4.50 per kWh. This development strengthens JSW Energy’s renewable energy portfolio and supports regional power demands.

The Kutehr project, revived in 2018 after delays due to policy and PPA issues, was initially conceived in 2007. Construction progressed rapidly, with 65% of tunnelling completed by February 2022, ahead of its planned September 2024 commissioning. The project, costing ₹2,500 crore, supplies power to Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam, meeting Haryana’s Hydro Power Purchase Obligation. The timing aligns with high water inflows during the monsoon, maximising output. JSW Energy’s hydro capacity now stands at 1,551 MW, with solar at 2,157 MW and wind at 3,562 MW, making renewables 56% of its 30.3 GW locked-in capacity.

The project aligns with JSW Energy’s goal of reducing its carbon footprint by 50% by 2030 and achieving carbon neutrality by 2050. The company aims to reach 20 GW capacity by 2030, with renewables comprising 85%. Himachal Pradesh, reliant on hydropower for most of its energy needs, benefits from such projects, though ecological concerns like river flow disruptions and local displacement remain. The Kutehr plant, under JSW Neo Energy Limited, complements the company’s existing 1,300 MW hydro assets in the state, acquired from Jaiprakash Power Ventures in 2015 for ₹9,700 crore.

Challenges in hydropower include environmental impacts and dependence on monsoon rainfall, which can be erratic due to climate change. Recent floods in Himachal Pradesh highlight the region’s vulnerability. JSW Energy mitigates risks through robust project execution and long-term PPAs, ensuring financial stability. The project’s completion ahead of schedule demonstrates the company’s expertise in hydro development, positioning it as India’s largest private-sector hydro operator.

In conclusion, the Kutehr project’s progress marks a significant step in India’s renewable energy transition. By enhancing hydro capacity and securing stable power supply agreements, JSW Energy contributes to sustainable development, though ongoing environmental monitoring is essential to balance ecological concerns.

Source: Outlook Business