JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited (“the Company”), has completed the acquisition of 4.7 GW renewable energy (“RE”) platform from O2 Power Pooling Pte. Ltd. (“O2 Power”), a platform jointly established by global investment organisations EQT & Temasek in 2020.
The platform is valued at an enterprise valuation of approximately ₹12,468 crores, after adjustments under the share purchase agreements. The Company will have a steady state EBITDA generation of ₹1,500 crores from 2,259 MW capacity (likely to be operational by June 2025). Additionally, ~₹13,500 crores of capital expenditure will be incurred to reach 4,696 MW of capacity by June 2027, at which stage it will have a steady state annualised EBITDA of ₹3,750 crores.
As of FY 2025, O2 Power’s installed capacity stands at 1,343 MW. Consequently, JSW Energy’s proforma FY 2025 installed capacity stands at 12,212 MW, with RE capacity accounting for 6,554 MW (~ 54% of total).
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy:
“ We are pleased to announce the completion of JSW Energy’s largest acquisition to date of 4.7 GW of O2 Power. 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. This strategic acquisition brings us closer to achieving our 20 GW capacity target significantly before 2030. O2 Power also brings additional connectivity for 900 MW, which will facilitate our future growth. We warmly welcome O2 Power’s experienced management team and employees to the JSW Energy family.”
Pritesh Vinay, Director (Finance) and CFO of JSW Energy:
“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 ‘Build vs 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.”
The acquired platform comprises of 4,100 MW of Utility scale RE projects and C&I capacity of 596 MW. Of the total platform capacity, 3,722 MW is tied-up under PPAs with high-credit-quality off-takers comprising of both utility scale and commercial and industrial (C&I) customers. While 974 MW of capacity has received Letter of Awards/Intent and are awaiting PPA signing. The acquired assets are spread across seven resource-rich states, primarily operating in western India. The portfolio features a well-diversified energy mix, including 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.
PWC were the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors, KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.