JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has completed the acquisition of a 4.7 GW renewable energy platform from O2 Power Pooling Pte. Ltd. O2 Power was established in 2020 by global investment firms EQT and Temasek. The platform has been acquired at an enterprise value of approximately ₹12,468 crores, after taking into account the adjustments specified in the share purchase agreements.
Following the acquisition, JSW Neo will achieve a steady-state EBITDA generation of around ₹1,500 crores from a capacity of 2,259 MW, which is expected to be operational by June 2025. To further expand, an estimated capital expenditure of ₹13,500 crores will be invested to increase the capacity to 4,696 MW by June 2027.
Upon completion, this expanded platform is projected to generate a steady-state annualised EBITDA of approximately ₹3,750 crores. As of FY 2025, O2 Power’s installed capacity stands at 1,343 MW. Consequently, JSW Energy’s proforma installed capacity for FY 2025 will rise to 12,212 MW, with renewable energy capacity contributing 6,554 MW, which will represent around 54% of the company’s total capacity.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said in a statement, “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 a 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, 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 ‘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 consists of 4,100 MW of utility-scale renewable energy projects along with 596 MW of commercial and industrial (C&I) capacity. Out of the total capacity, 3,722 MW is already secured through power purchase agreements (PPAs) with high-credit-quality customers from both utility and C&I segments.
Additionally, 974 MW of capacity has received Letters of Award or Intent and is in the process of signing PPAs. The renewable assets acquired are spread across seven resource-rich states in India, with a strong presence in western India. The portfolio offers a well-diversified energy mix, including 1.8 GW of solar and 0.5 GW of wind projects, among others, further strengthening JSW Energy’s renewable energy footprint in the country.
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