JSW Energy has signed a definitive agreement to acquire a 4696 megawatt (mw) renewable energy platform from O2 Power Pooling Pte Ltd, jointly established by EQT Infrastructure & Singapore’s Temasek, for $1.47 billion (₹12,468 crore).
The transaction entails acquisition of O2 Power Midco Holdings Pte Ltd. and O2 Energy SG Pte Ltd and is subject to the approval of the Competition Commission of India (CCI) and other customary approvals, including lenders.
O2 Power is a renewable energy platform, where 2,259mw will be operational by June 2025; 1,463mw is currently under construction, and an additional 974mw are in the pipeline, all scheduled for commissioning by June 2027.
The platform has a blended average tariff of ₹3.37/KwH with remaining life of 23 years. The capacities are spread across seven resource-rich states of India. This acquisition will leapfrog JSW Energy’s locked-in generation capacity by 23 per cent, from 20,012mw to 24,708mw.
The platform boasts a majority of the capacity tied-up under long-term power purchase agreement with quality off-takers with high credit rating.
O2 Power Midco Holdings Pte and O2 Energy SG Pte were incorporated in November 2019 and June 2021, respectively, in Singapore, primarily for the development of renewable energy projects in India through various special purpose vehicles. Revenue from operations from the target companies in FY24 was ₹538 crore. The proposed acquisition by JSW Neo Energy Ltd, a wholly owned subsidiary of JSW Energy, is expected to be completed on or before May 26, 2025
Sharad Mahendra, joint MD and CEO of JSW Energy, said: “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.”
Pritesh Vinay, director (finance) and CFO of JSW Energy, said: “This is a very attractive acquisition – both from ‘build vs buy’ trade off as well as from a quality and value perspective when compared to all acquisitions in this space over recent times, and is consistent with our long track record of being prudent in capital allocation and focusing on high cash returns projects above our hurdle rate of mid-teen equity IRR.”