JSW Neo Energy, a subsidiary of JSW Energy, has announced a definitive agreement to acquire a 4,696MW renewable energy platform from O2 Power Pooling, a joint venture between EQT Infrastructure and Temasek.
The transaction, valued at an enterprise valuation of approximately Rs124.68bn ($1.47bn), will see JSW Neo taking over O2 Power Midco Holdings and O2 Energy.
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This move will increase JSW Neo’s generation capacity by 23%, from 20,012MW to 24,708MW and boost the company’s locked-in generation capacity.
O2 Power’s renewable energy platform comprises 4,696MW, of which 2,259MW will be operational by June 2025.
An additional 1,463MW is under construction, and 974MW are in the pipeline, with full commissioning expected by June 2027. The capacities are distributed across seven states in India.
The platform has a blended average tariff of ₹3.37/kWh and an average remaining life of approximately 23 years.
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By GlobalDataMost of the acquired capacity is secured under long-term power purchase agreements with creditworthy off-takers.
Additionally, the commercial and industrial (C&I) capacity of the platform stands at 596MW, which increases JSW Neo’s total C&I capacity to 3,694MW, inclusive of the JSW Group’s C&I capacity of 2,653MW.
JSW Energy CEO and joint managing director Sharad Mahendra said: “These high-quality assets strengthen our operational footprint across key resource-rich states.
“It gives me a great joy to welcome the experienced management team and employees of O2 power to JSW Energy family. By combining our strengths, I am confident that we will deliver exceptional value to our stakeholders.”
The deal is contingent on the approval of the Competition Commission of India (CCI) and other standard regulatory consents.
PWC served as the transaction advisor to JSW Neo, with Khaitan and Herbert Smith providing legal counsel. KPMG conducted financial and tax due diligence, while Wind Guard performed the technical due diligence for the acquisition.
Recently, JSW Neo secured a letter of award (LoA) from India’s NTPC to develop a 400MW ISTS-connected solar power project.
The award is part of NTPC’s tariff-based bidding for 1500MW ISTS-connected solar projects under NTPC-ISTS-III.
