JSW Neo Energy Limited, a fully owned subsidiary of JSW Energy, has signed a definitive agreement to acquire a 4,696 MW renewable energy platform from O2 Power Pooling Pte. Ltd., a move that will significantly expand JSW Energy’s renewable energy capacity.
The acquisition, valued at approximately Rs 12,468 crores (USD 1.47 billion), includes O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd. The deal is subject to approval by the Competition Commission of India (CCI) and other customary regulatory approvals.
Expanding Renewable Energy Footprint
O2 Power’s renewable platform comprises 2,259 MW of operational capacity, 1,463 MW under construction, and 974 MW in the pipeline. The entire platform is expected to be operational by June 2027. The platform spans seven resource-rich states across India, with a blended average tariff of Rs 3.37 per kWh and an estimated remaining life of around 23 years.
This acquisition will boost JSW Energy’s total generation capacity by 23%, increasing its locked-in capacity from 20,012 MW to 24,708 MW.
Strategic Growth and Long-Term Value Creation
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, called the acquisition a major milestone, highlighting that it represents the company’s largest acquisition to date. “This acquisition strengthens our position as a leading player in India’s energy sector. It enhances our operational footprint across key resource-rich states and marks an exciting chapter in our growth journey,” Mahendra said. He also welcomed O2 Power’s management team and employees to the JSW Energy family, expressing confidence that the combined strengths would deliver substantial value to stakeholders.
Pritesh Vinay, Director (Finance) and CFO of JSW Energy, emphasized the deal’s value accretion for shareholders, noting that the acquisition was highly attractive both from a strategic and financial perspective. “This deal gives us an opportunity to accelerate our growth ambitions in the power sector, while maintaining our prudent approach to capital allocation and focusing on high-return projects,” Vinay said.
Secured Capacity and C&I Growth
A significant portion of O2 Power’s renewable capacity is secured under long-term power purchase agreements (PPAs) with high-credit-rating off-takers. Additionally, the platform includes 596 MW of corporate and industrial (C&I) capacity, which will increase JSW Energy’s total C&I capacity to 3,694 MW when combined with the JSW Group’s existing C&I capacity.
Advisors and Due Diligence
The transaction was advised by PwC, with legal counsel provided by Khaitan & Co and Herbert Smith. KPMG conducted financial and tax due diligence, while technical due diligence was carried out by Wind Guard.
This acquisition further positions JSW Energy as a key player in India’s rapidly expanding renewable energy sector, aligning with its strategy to scale up clean energy assets and support India’s energy transition.
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