JSW Energy expands its green portfolio with one of India's largest renewable energy acquisitions, positioning itself to reach its 20 GW capacity target ahead of its 2030 timeline.
09 Apr 2025 | 6080 Views | By Angitha Suresh
JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has completed the acquisition of a 4.7 gigawatt (GW) renewable energy platform from O2 Power Pooling Pte. Ltd. for an enterprise valuation of approximately ₹12,468 crores (US$1.5 billion), the company announced today.
The acquisition brings JSW Energy's ...
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JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has completed the acquisition of a 4.7 gigawatt (GW) renewable energy platform from O2 Power Pooling Pte. Ltd. for an enterprise valuation of approximately ₹12,468 crores (US$1.5 billion), the company announced today.
The acquisition brings JSW Energy's proforma installed capacity to 12,212 MW for the financial year 2025, with renewable energy now accounting for 54% of its total portfolio.
According to company statements, the acquired assets are expected to generate a steady state EBITDA of ₹1,500 crores from 2,259 MW of capacity that should be operational by June 2025. JSW Energy plans to invest an additional ₹13,500 crores in capital expenditure to reach the full 4,696 MW capacity by June 2027, at which point the steady state annualized EBITDA is projected to reach ₹3,750 crores.
"This acquisition brings high-quality assets across resource-rich states, along with management team and employees having a proven track record in planning and execution," said Sharad Mahendra, Joint Managing Director and CEO of JSW Energy. "This strategic acquisition brings us closer to achieving our 20 GW capacity target significantly before 2030."
The acquired platform consists of 4,100 MW of utility scale renewable energy projects and 596 MW of commercial and industrial (C&I) capacity. Of this total, 3,722 MW is already tied up under power purchase agreements with high-credit-quality customers, while 974 MW has received Letter of Awards/Intent and awaits PPA signing.
The portfolio is diversified across seven resource-rich states, primarily in western India, and includes 1.8 GW of solar, 0.5 GW of wind, 1.6 GW of hybrid, and 0.9 GW of complex solutions like FDRE/RTC. The platform has a blended average tariff of ₹3.37/KWh.
O2 Power was established in 2020 as a joint platform by global investment organizations EQT and Temasek. Its current installed capacity stands at 1,343 MW.
JSW Energy, part of the $24 billion JSW Group, began commercial operations in 2000 with thermal power plants in Karnataka. Since then, it has expanded significantly across the power sector value chain with diversified assets in generation and transmission. The company is currently constructing various power projects totaling 7.5 GW with a vision to achieve 20 GW capacity before 2030.
PWC served as transaction advisor for the deal, with Khaitan & Co and Herbert Smith providing legal advice. KPMG performed financial and tax due diligence, while Wind Guard conducted technical due diligence.