Shares of JSW Energy slumped 3% despite the company announcing that its step-down subsidiary signed a battery energy storage purchase agreement.

In its regulatory filing, the company said that JSW Renew Energy Five Limited, a wholly-owned subsidiary of JSW Neo Energy Limited and a step-down subsidiary of the company, has signed a battery energy storage purchase agreement with Solar Energy Corporation of India Limited.

As part of the deal, the first project is a 250 megawatt/ 500 megawatt-hour standalone battery energy storage system out of the total awarded project capacity of 500 megawatt/ 1,000 megawatt-hour.

The company is set to receive a fixed capacity charge of Rs 10.84 lakh per megawatt per month for 12 years for 60% of the total capacity, which amounts to 150 megawatts / 300 megawatt-hours, whereas the company will manage the remaining 40% of the project capacity.

Earlier in February, JSW Neo Energy received a Letter of Award from Solar Energy Corporation of India Limited for a 500 megawatt wind project.

The shares touched a 52-week high of Rs 537.90 on 26 February 2024 and a 52-week low of Rs 220.65 on 28 March 2023.

At 2:36 pm, the shares of JSW Energy were trading 0.43% lower at Rs 507.30 on NSE.