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JSW Neo Energy will Strengthens Position in Renewable Energy with Acquisition of O2 Power

JSW Neo Energy, a wholly-owned subsidiary of JSW Energy, has signed a definitive agreement to acquire a renewable energy platform with a total capacity of 4,696 MW from O2 Power Pooling. The enterprise valuation of the platform stands at approximately Rs 12468 Cr, after adjustments for net current assets.

The acquisition includes O2 Power Midco Holdings and O2 Energy SG, subject to approvals from the Competition Commission of India and other necessary regulatory clearances.

O2 Power's renewable portfolio comprises 4,696 MW, of which 2,259 MW is expected to become operational by June 2025.
An additional 1,463 MW is under construction, and 974 MW is in the pipeline, with commissioning slated for June 2027. The portfolio boasts a blended average tariff of ?3.37/kWh and an average operational lifespan of around 23 years.
Spread across seven Indian states, the acquisition is set to enhance JSW Energy's locked-in generation capacity by 23%, raising its total from 20,012 MW to 24,708 MW. EQT Infrastructure and Temasek had jointly established O2 Power Pooling, securing most of its capacity through long-term power purchase agreements (PPAs). The acquisition also adds 596 MW of Commercial and Industrial (C&I) capacity, bringing JSW Energy's total C&I capacity to 3,694 MW, including 2,653 MW allocated to the JSW Group.

Expanding Wind and Energy Storage Projects

In another strategic move, JSW Neo Energy recently announced the acquisition of three wind energy projects from Hetero Wind Power with a combined capacity of 125 MW. This acquisition is valued at an enterprise cost of ?630 Cr. The transaction includes special-purpose vehicles: Hetero Wind Power, Hetero Wind Power (Pennar), and Hetero Med Solutions.
Additionally, JSW Energy PSP Two, a subsidiary of JSW Energy, signed an agreement with MSEDCL to supply 1,500 MW/12,000 MWh of power from pumped hydro storage facilities.

Focus on Battery Energy Storage

In September, JSW Neo Energy emerged as one of the winners in the Solar Energy Corporation of India (SECI) auction to develop standalone battery energy storage systems with a capacity of 1,000 MW/2,000 MWh. The company quoted a tariff of ?381,000 per MW per month for 500 MW/1,000 MWh.

Strengthening Renewable Energy Leadership

These strategic acquisitions and projects position JSW Neo Energy as a major player in India's renewable energy sector. With an expanded portfolio across solar, wind, and energy storage technologies, the company is set to contribute significantly to India's transition towards sustainable energy solutions.