Mumbai, India-based JSW Neo Energy, a subsidiary of JSW Energy, has finalised the acquisition of a 4.7GW renewable energy platform from O2 Power.
The acquisition, valued at Rs124.68bn ($1.44bn), marks a significant expansion in JSW Energy’s renewable energy capacity.
Go deeper with GlobalData
The platform, established by EQT and Temasek in 2020, strengthens JSW Energy’s position in the renewable sector.
The acquisition will enable JSW Energy to generate steady state earnings before interest, taxation, depreciation and amortisation (EBITDA) of Rs15bn from 2.25GW capacity, expected to be operational by June 2025.
Additional capital expenditure of Rs135bn will be required to achieve a capacity of 4.69GW by June 2027, resulting in an annualised EBITDA of Rs37.5bn.
As of the fiscal year 2025, O2 Power’s installed capacity is 1.34GW.
JSW Energy joint managing director and CEO Sharad Mahendra stated: “We are pleased to announce the completion of JSW Energy’s largest acquisition to date of 4.7GW of O2 Power. This acquisition brings high-quality assets across resource-rich states, along with a management team and employees having a proven track record in planning and execution.
“This strategic acquisition brings us closer to achieving our 20GW capacity target significantly before 2030. O2 Power also brings additional connectivity for 900MW, which will facilitate our future growth. We warmly welcome O2 Power’s experienced management team and employees to the JSW Energy family.”
With this acquisition, JSW Energy’s pro forma installed capacity for the same period is 12.21GW, with renewable energy accounting for 6.55GW – approximately 54% of the total capacity.
The acquired platform includes 4.1GW of utility-scale renewable energy projects and 596MW of commercial and industrial capacity.
Of the total platform capacity, 3.72GW is secured under power purchase agreements (PPAs) with high-credit-quality off-takers, including both utility-scale and commercial and industrial customers.
An additional 974MW of capacity has received letters of awards or intent, and awaits the signing of PPAs
The assets are distributed across seven resource-rich states, primarily in western India.
The portfolio includes a diverse energy mix with 1.8GW of solar, 0.5GW of wind, 1.6GW of hybrid and 0.9GW of complex solutions such as firm and despatchable renewable energy round the clock.
The platform has a blended average tariff of Rs3.37 per kilowatt hour.
JSW energy director of finance and chief financial officer Pritesh Vinay stated: “The completion of O2 Power acquisition underscores our commitment towards value accretive growth and prudent capital allocation. O2 Power has built an attractive portfolio and pipeline of projects, which adds to our asset base and strengthens our operational capabilities and presence.
“Not only is this acquisition attractive – both from [a] “build versus buy” trade off as well as from a quality and value perspective – but also we will draw synergies operationally as well as enhance portfolio returns from a competitive financing package to fund this transaction.”
PWC served as transaction advisor, while Khaitan & Co and Herbert Smith were legal advisors.
KPMG conducted financial and tax due diligence, and Wind Guard carried out technical due diligence.
JSW Energy received approval from the Committee of Creditors to acquire KSK Mahanadi Power Company’s 3.6GW coal-fired thermal power plant in Chhattisgarh, India, in January 2025.
This acquisition is part of the company’s resolution plan under the corporate insolvency process of the Insolvency and Bankruptcy Code 2016.
The operational segment of the plant includes three units with a combined capacity of 1.8GW, secured 95% under long and medium-term PPAs.
