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

JSW Energy Limited announced on April 9, 2025, that its wholly owned subsidiary JSW Neo Energy has completed the acquisition of a 4.7 GW renewable energy platform from O2 Power Pooling Pte. Ltd. for an enterprise value of ₹12,468 crore. O2 Power was originally established in 2020 by global investment giants EQT and Temasek.

The deal significantly boosts JSW Energy’s clean energy footprint and marks a major step toward its green energy ambitions. With this acquisition, JSW Energy’s total installed capacity increases to 12,212 MW, of which 6,554 MW (around 54%) is from renewable sources.

Capacity, Scale, and Growth Outlook

As of FY2025, O2 Power has an installed capacity of 1,343 MW. The acquisition includes a 4,696 MW platform, with 2,259 MW expected to be operational by June 2025, contributing an estimated steady-state EBITDA of ₹1,500 crore. The company plans to invest an additional ₹13,500 crore in capex to scale the platform to its full capacity by June 2027, which is projected to generate EBITDA of ₹3,750 crore annually.

The platform consists of:

• 4,100 MW utility-scale renewable projects
• 596 MW commercial and industrial (C&I) capacity
• 3,722 MW already tied up under PPAs
• 974 MW under Letters of Award/Intent pending PPA signings

The diversified portfolio includes:

• 1.8 GW solar
• 0.5 GW wind
• 1.6 GW hybrid
• 0.9 GW firm and dispatchable renewable energy (FDRE)/round-the-clock (RTC) solutions

The projects are spread across seven resource-rich states, largely concentrated in western India, with a blended average tariff of ₹3.37/kWh.

Advisors and Due Diligence

The transaction involved:

• PwC as transaction advisor
• Khaitan & Co and Herbert Smith as legal advisors
• KPMG for financial and tax due diligence
• Wind Guard for technical due diligence

Management Remarks

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, told CNBC TV18: “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.”

JSW Energy Share Price Performance

As of the end of trading on April 9, 2025, JSW Energy’s shares closed at ₹482.45 on the NSE, marking a 1.59% loss. The Deliverable/Traded Quantity stood at 44.81%, and the company’s market capitalisation is ₹84,321.09 crore.

Conclusion

The acquisition of O2 Power adds high-quality, contracted assets to JSW Energy’s portfolio, giving the company a significant push towards its 20 GW renewable target. With diversified assets, robust off-take agreements, and strategic grid connectivity, JSW Energy positions itself for sustained clean energy growth in India’s evolving power sector.

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