JSW Energy aims for 30Gw generation capacity by 2030, revises target

Mamata Banerjee to lay foundation stone of firm's ₹16,000 cr Salboni plant on Monday

This report has been updated to correct an error in the previous version  JSW Energy, the power generation arm of the $24 billion JSW Group, has raised its generation capacity target from 20 gigawatt (Gw) to 30 Gw by 2029-30 (FY30) or earlier.

 

At the end of 2024-25 (FY25), the Sajjan Jindal-owned firm had an operating capacity of 10.8 Gw. Currently, its capacity has increased to 12.2 Gw. There is an order pipeline of an additional 18 Gw, which is likely to be executed by 2030.

 

Earlier, JSW Energy had set a generation target capacity of 20 Gw and a storage capacity target of 40 gigawatt-hour (GWh).

 

 

Sharad Mahendra, joint managing director and chief executive officer, JSW Energy, said at a media interaction that the company had announced its Strategy 2.0 with a target of 20 Gw generation capacity by FY30 three years ago.

 

The first milestone was 10 Gw by FY25. “We ended FY25 at 10.8 Gw. And we are now at 12.2 Gw. So, we are absolutely confident that we will achieve 20 Gw capacity significantly earlier than FY30.”

 

JSW Energy is expected to come out with its Strategy 3.0 in two to three months with the revised numbers for FY30.

 

According to the company, the immediate focus for JSW Energy is to execute greenfield projects. The entire 18 Gw increase will come through the organic route, though the company may look at inorganic opportunities too if they arise.

 

Pritesh Vinay, director-finance, JSW Energy, said that the capital expenditure (capex) for achieving goals set out in Strategy 2.0 – 20 Gw of generation capacity along with 40 GWh storage capacity by 2030 — was ₹1.15 trillion. This blueprint was put out in 2023.

 

“When we come back with Strategy 3.0, it will have new gigawatt targets and quantify the capex,” Vinay said, adding that the revised capex will be upwards of ₹1.15 trillion.

 

Of the ₹1.15 trillion, JSW Energy has invested ₹16,000-17,000 crore in organic expansion since 2023. Around ₹29,000 crore has been spent on acquisitions, including those of KSK Mahanadi and renewable energy platform O2 Power.

 

Largest greenfield investment

 

The 18 Gw capacity in the pipeline includes a 1,600 megawatt (Mw) thermal plant at Salboni in West Bengal. The ₹16,000 crore investment in the project is one of the largest in the private sector in the state.

 

The project was announced by Sajjan Jindal at the Bengal Global Business Summit in February. The 2X800 Mw plant was awarded under a competitive bidding process invited by the West Bengal State Electricity Distribution Company.

 

“This is the largest investment in a greenfield project in the history of the organisation,” said Mahendra. “Salboni isn’t just a plant, it’s a gateway to JSW’s eastern ambitions.”

 

West Bengal Chief Minister Mamata Banerjee will lay the foundation stone for the project on Monday in the presence of JSW Group Chairman Sajjan Jindal.

 

According to Mahendra, the first unit will be operational in 42 months and the second unit in 48 months. “Within four years, the entire plant will be operational.”

 

The power plant will come up on a large plot at Salboni already with the JSW Group, which is already home to a cement plant from the JSW Cement stable.