JSW Energy completes acquisition of O2 Power for Rs. 12,468 Cr

JSW Energy will have a steady state EBITDA generation of Rs. 1,500 crore from 2,259 MW capacity

JSW Neo Energy Limited (JSW Neo), a wholly owned subsidiary of JSW Energy Limited has completed the acquisition of 4.7 GW renewable energy platform from O2 Power Pooling, a platform jointly established by global investment organisations EQT & Temasek in 2020.

The platform is valued at an enterprise valuation of approximately Rs. 12,468 crore, after adjustments under the share purchase agreements. JSW Energy will have a steady state EBITDA generation of Rs. 1,500 crore from 2,259 MW capacity (likely to be operational by June 2025). Additionally, ~Rs. 13,500 crores 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 crore.

As of FY 2025, O2 Power's installed capacity stands at 1,343 MW. Consequently, JSW Energy's proforma FY 2025 installed capacity stands at 12,212 MW, with RE capacity accounting for 6,554 MW (~ 54% of total).

Sharad Mahendra, Joint Managing Director and CEO, JSW Energy, said: “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 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."

The acquired platform comprises of 4,100 MW of Utility scale RE projects and C&I capacity of 596 MW. Of the total platform capacity, 3,722 MW is tied-up under PPAs with high-credit-quality off-takers comprising of 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.

PWC were the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors, KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.