JSW Neo Energy Limited, a fully owned subsidiary of JSW Energy Limited, has completed the acquisition of a 4.7 GW renewable energy platform from O2 Power Pooling Pte Ltd. O2 Power, a renewable energy platform established by global investors EQT and Temasek in 2020, was the seller.
The total value of the transaction is approximately ₹12,468 crore, after adjustments as per the share purchase agreement. The newly acquired platform, with a capacity of 2,259 MW, is expected to generate an EBITDA of ₹1,500 crore annually once operational by June 2025. JSW Energy plans an additional investment of ₹13,500 crore to expand the platform to 4,696 MW by June 2027. By then, the annual EBITDA is expected to rise to ₹3,750 crore.
In fiscal year 2025, O2 Power has an installed capacity of 1,343 MW. With this addition, JSW Energy’s total installed capacity for FY25 will reach 12,212 MW, with renewable energy contributing about 54% (6,554 MW) of the total.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, called the acquisition the company’s largest to date. He said, “This acquisition significantly accelerates our renewable growth strategy. The portfolio consists of high-quality assets in resource-rich regions, backed by a proven management team. This move brings us closer to our 20 GW target, well ahead of the 2030 deadline, and strengthens our future project pipeline with 900 MW of additional grid connectivity.”
Pritesh Vinay, Director (Finance) and CFO of JSW Energy, added, “The acquisition reflects our disciplined approach to growth and capital allocation. O2 Power’s well-established portfolio complements our existing assets and significantly increases our operational scale. The deal offers strategic advantages in terms of quality, returns, financing, cost efficiencies, and operational synergies.”
The acquired platform includes 4,100 MW of utility-scale renewable energy projects and 596 MW of commercial and industrial (C&I) capacity. Of this, 3,722 MW is secured under long-term power purchase agreements (PPAs) with strong utility and C&I customers. An additional 974 MW is pending PPA finalization, having already received letters of award or intent.
The assets are located across seven states in India, mainly in the western region, and feature a mix of 1.8 GW of solar power, 0.5 GW of wind energy, 1.6 GW of hybrid projects, and 0.9 GW of firm and round-the-clock solutions. The average tariff for the portfolio stands at ₹3.37 per kWh.
The transaction involved advisors PwC (transaction advisory), Khaitan & Co and Herbert Smith (legal), KPMG (financial and tax due diligence), and Wind Guard (technical due diligence).
JSW Energy Ltd, part of the USD 24 billion JSW Group, is one of India’s leading private power companies with interests in steel, energy, infrastructure, cement, and sports. Since its commercial operations began in 2000, JSW Energy has increased its installed capacity from 260 MW to 10 GW, surpassing its FY25 target. The company is also building an additional 7.5 GW and aims to reach a total capacity of 20 GW before 2030. JSW Energy focuses on responsible growth, efficient operations, and long-term value creation for stakeholders.
