JSW Neo Energy Limited, a subsidiary of JSW Energy Ltd, has entered into a formal agreement to purchase O2 Power, a renewable energy platform founded in partnership by EQT Partners of Sweden and Temasek Holdings of Singapore. The platform is valued at an enterprise valuation of Rs 12,468 crore ($1.47 billion) following adjustments for net current assets.
JSW Energy has made its largest acquisition to date, as announced in a media statement.
According to JSW Energy, the platform, with a capacity of 2.25 gigawatts (GW), is expected to be operational by June 2025. A presentation by JSW Energy indicated a further capital expenditure of Rs 13,000–14,000 crore, which will increase the platform’s total capacity to 4.6 GW in the coming years
In a stock exchange filing, JSW Energy said: “O2 Power is a renewable energy platform with a capacity of 4,696 MW – where 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW are in the pipeline, all scheduled for commissioning by June 2027. The platform has a blended average tariff of Rs 3.37/KWh with remaining life of 23 years. The capacities are spread across seven resource-rich states of India. This acquisition will leapfrog the company’s locked-in generation capacity by 23%, from 20,012 MW to 24,708 MW.”
The acquisition will involve obtaining O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd, pending approval from the Competition Commission of India (CCI) and other standard regulatory approvals for a transaction of this magnitude, as stated by JSW Energy.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “We are thrilled to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform, which is JSW Energy’s largest acquisition since inception. This landmark acquisition strengthens our positioning as a leading player in India’s energy sector. These high-quality assets strengthen our operational footprint across key resource-rich states. It gives me a great joy to welcome the experienced management team and employees of O2 power to JSW Energy family. By combining our strengths, I am confident that we will deliver exceptional value to our stakeholders.”