JSW Neo Energy Acquires 4.7 GW Renewable Energy Platform from O2 Power for ₹12,468 Crore.

JSW Neo Energy, a subsidiary of JSW Energy, has entered into a definitive agreement to acquire a 4,696 MW (4.7 GW) renewable energy platform from O2 Power Pooling Pte for ₹12,468 crore. O2 Power is jointly owned by Swedish fund EQT Infrastructure and Singapore’s sovereign fund Temasek.

The acquisition involves O2 Power Midco Holdings Pte and O2 Energy SG Pte and is subject to regulatory approvals, including clearance from the Competition Commission of India, along with other customary conditions.

The O2 Power platform includes 2,259 MW of operational capacity expected by June 2024, 1,463 MW under construction, and 974 MW in the pipeline, with all projects targeted for commissioning by June 2027. The projects span seven resource-rich states in India, offering a blended average tariff of ₹3.37/kWh with a remaining asset life of 23 years.

This acquisition will boost JSW Energy’s locked-in generation capacity by 23%, from 20,012 MW to 24,708 MW, marking its largest acquisition to date. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said the deal solidifies the company’s position as a leading player in India’s energy sector and enhances its operational presence across key regions.

Pritesh Vinay, Director (Finance) and CFO of JSW Energy, highlighted the deal’s strategic and financial value, emphasizing its alignment with the company’s focus on high cash-return projects and prudent capital allocation.

The O2 Power platform is anchored by long-term power purchase agreements with high-credit-quality off-takers. Additionally, its commercial and industrial (C&I) capacity of 596 MW brings JSW Energy’s total captive capacity to 3,694 MW, including 2,653 MW for the JSW Group.

Advisors on the transaction included PwC, Khaitan & Co, Herbert Smith, KPMG, and Wind Guard, covering financial, tax, and technical due diligence.

HBL