Shares of JSW Energy Ltd surged more than 7% on Monday, 30 December, after the company’s subsidiary, JSW Neo, signed a final agreement with O2 Power to buy 4,696 megawatts (MW) of renewable energy (RE) platform in a $1.47 billion enterprise value deal.
According to a statement from JSW Energy, Temasek and EQT Infrastructure co-founded O2 Power Midco Holdings Pte. Ltd and O2 Energy SG Pte. Ltd, which will be bought.
With the Competition Commission of India’s (CCI) approval and other regulatory clearances, the deal is expected to boost JSW Energy’s locked-in generation capacity from 20,012 MW to 24,708 MW.
Locked-in capacity includes a range of installed assets and projects at various stages of development.
By June 2025, O2 Power, the renewable energy platform at the centre of the agreement, should have 2,259 MW of capacity online.
With 1,463 MW currently under development and another 974 MW in the works, all projects on the platform are anticipated to be finished by June 2027. The assets are dispersed throughout seven Indian states, and there is a blended average tariff of Rs 3.37 per kWh with an estimated 23 years left in their operating life.
Sharad Mahendra, joint managing director and CEO of JSW Energy, said, “We are thrilled to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform which is JSW Energy’s largest acquisition since inception. This landmark acquisition strengthens our positioning as a leading player in India’s energy sector. These high-quality assets strengthen our operational footprint across key resource-rich states. It gives me great joy to welcome the experienced management team and employees of O2 power to the JSW Energy family. By combining our strengths, I am confident that we will deliver exceptional value to our stakeholders.”
The platform’s overall capacity would rise to 4.6 gigawatts (GW) in the next few years thanks to an extra Rs 13,000–14,000 crore spent on capital projects through the acquisition of the business.
Following the acquisition, the 596 MW commercial and industrial (C&I) component of O2 Power’s portfolio will significantly boost JSW Energy’s C&I capacity to 3,694 MW.
According to JSW Energy, the purchase will be crucial to its long-term strategy to increase the proportion of renewable energy in its portfolio. The firm has 7,740 MW of installed capacity as of September 2024.
At 11:57 am, the shares of JSW Energy were trading 3.52% higher at Rs 647.85 on NSE.
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