JSW Energy plans to invest around ₹14,000 crore to boost the renewable energy output of its recently acquired subsidiary, O2 Power, elevating its capacity to 4.7 GW by 2027. Currently, O2 Power operates at 1.3 GW.
The acquisition of O2 Power’s 4,696 MW renewable portfolio was completed by JSW Neo Energy Ltd, a JSW Energy subsidiary, for an enterprise value of ₹12,468 crore. Of this capacity, 2,259 MW is expected to be operational by June 2025. While an additional 1,463 MW is under construction, and 974 MW is in the pipeline.
The company has outlined capital expenditure of ₹15,000-18,000 crore for FY26, which will go towards completing current developments and initiating new growth opportunities. For FY25, the spending was significantly lower at around ₹8,000 crore, attributed to project delays and a strategic focus on inorganic expansion.
The management clarified that this temporary cutback was deliberate to realign resources with new acquisition-led growth. Looking ahead, JSW Energy is constructing 11.3 GW worth of generation capacity, all secured under long-term Power Purchase Agreements (PPAs), ensuring revenue stability.
Of the 11.3 GW under development, 9.7 GW comprises renewable energy projects, while 1.6 GW represents the Salboni ultra-supercritical thermal project-marking JSW Energy’s return to greenfield thermal ventures after over 10 years. Additionally, the company has a strong pipeline of approximately 4.9 GW, backed by Letters of Intent or Awards.
On the thermal front, the firm is integrating the 3,600 MW KSK Mahanadi asset, acquired through the NCLT process for ₹16,084 crore, with 1,800 MW already operational and 95% of it secured through PPAs and fuel supply agreements. The integration aims to enhance cost efficiency and operational synergy.
Read More: JSW Energy Revenue and PAT Up 15% in Q4FY25, Declared Dividend
As of May 21, 2025, at 11:00 AM, JSW Energy share price is trading at ₹511.10 per share, reflecting a surge of 1.27% from the previous day's closing price. Over the past month, the stock has declined by 1.97%. The stock's 52-week high stands at ₹804.90 per share, while its low is ₹418.75 per share.
JSW Energy’s strategic investments in O2 Power and broader renewable and thermal projects reflect its strong commitment to expanding sustainable energy capacity, ensuring long-term growth and energy security.
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Published on: May 21, 2025, 2:02 PM IST
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