JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has announced a landmark acquisition of a 4,696 MW renewable energy platform from O2 Power Pooling Pte. Ltd., jointly established by EQT Infrastructure and Temasek. The deal, valued at an enterprise valuation of ₹12,468 crores (approximately US$1.47 billion), marks a significant milestone in India’s renewable energy sector. The transaction is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI), along with other customary conditions.
Boost to Renewable Energy Portfolio
This acquisition will enhance JSW Energy’s locked-in generation capacity by 23%, increasing its portfolio from 20,012 MW to 24,708 MW. The move reflects JSW Energy’s robust commitment to expanding its renewable energy footprint and aligning with India’s clean energy transition goals.
Details of the O2 Power Platform
The O2 Power platform comprises:
- Operational Capacity: 2,259 MW, expected to be fully commissioned by June 2025.
- Capacity Under Construction: 1,463 MW.
- Pipeline Projects: 974 MW, targeted for commissioning by June 2027.
These assets are strategically located across seven resource-rich states in India and come with a blended average tariff of ₹3.37 per kWh. The platform’s projects have a remaining life of 23 years, ensuring long-term revenue generation and sustainability.
Strategic Importance
The acquisition is expected to solidify JSW Energy’s position as a leader in India’s renewable energy space. It not only increases the company’s generation capacity but also bolsters its ability to meet the growing energy demands in an environmentally sustainable manner.
Leadership Insights
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy:
“This landmark acquisition is JSW Energy’s largest since its inception and reinforces our position as a leading player in India’s energy sector. We are excited to welcome the experienced team at O2 Power to the JSW Energy family and look forward to delivering exceptional value to our stakeholders.”
Pritesh Vinay, Director (Finance) and CFO of JSW Energy:
“This acquisition is not only consistent with our capital allocation strategy but also significantly value-accretive for our shareholders. It aligns with our growth ambitions and strengthens our focus on high-return projects.”
Why This Matters
The acquisition aligns with JSW Energy’s vision to become a significant contributor to India’s renewable energy targets, including achieving 500 GW of non-fossil fuel capacity by 2030. The O2 Power platform brings not only additional capacity but also valuable expertise and an established footprint in India’s renewable energy market.
Looking Ahead
With this acquisition, JSW Energy is poised to capitalize on India’s expanding renewable energy market. The company’s enhanced capacity, supported by O2 Power’s strategically located assets, positions it as a key player in driving sustainable energy solutions for the future.
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