JSW Neo Energy acquires 4.7 GW green energy platform from O2 Power

JSW Energy on Wednesday said its arm JSW Neo Energy has completed the acquisition of 4.7 GW renewable energy platform from O2 Power for an enterprise value of Rs 12,468 crore.

The total installed capacity now stands at 12.2 GW, with 54 per cent from renewable energy, the company said, adding that it is a bold step towards JSW Energy's 20 GW vision before 2030.

"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 the management team and employees having a proven track record in planning and execution," Sharad Mahendra, Joint Managing Director and CEO of JSW Energy said in a statement.

"This strategic acquisition brings us closer to achieving our 20 GW capacity target significantly before 2030," Mahendra added.

O2 Power also brings additional connectivity for 900 MW, which will facilitate our future growth, Mahendra noted.

In 2020, O2 Power was jointly established by European alternative asset manager EQT and Singapore's Temasek.

Following the acquisition, the company will have a steady state EBITDA generation of Rs 1,500 crore from 2,259 MW capacity (likely to be operational by June 2025), JSW Energy statement said.

Additionally, it stated that Rs 13,500 crore of capital expenditure will be incurred to reach 4,696 MW of capacity by June 2027, at which stage it will have a steady state annualised EBITDA of Rs 3,750 crores.

As of FY 2025, O2 Power's installed capacity stood at 1,343 MW. Consequently, JSW Energy's FY 2025 installed capacity was at 12,212 MW, with RE capacity accounting for 6,554 MW (54 per cent of the total).

The acquired platform comprises 4,100 MW of Utility scale RE projects and commercial and industrial (C&I) capacity of 596 MW. Of the total platform capacity, 3,722 MW is tied-up under power purchase agreement (PPAs) with high-credit-quality off-takers comprising both utility scale and commercial and industrial (C&I) customers.

While 974 MW of capacity has received Letter of Awards/Intent and are awaiting PPA signing. The acquired assets are spread across seven resource-rich states, primarily operating in western India.

The portfolio features a well-diversified energy mix, including 1.8 GW of solar, 0.5 GW of wind 1.6 GW of hybrid and 0.9 GW of complex solutions like FDRE/RTC. The platform has a blended average tariff of Rs 3.37/KWh.