JSW Energy Ltd will acquire a 4,696 MW renewable energy platform from O2 Power Pooling Pte Ltd for an enterprise value of Rs 12,468 crore, marking the energy major’s largest acquisition
The acquisition will be made through its wholly-owned subsidiary, JSW Neo Energy Ltd. Sweden-based EQT Infrastructure and Singapore’s Temasek jointly established the renewable energy platform O2 Power in 2020.
O2 Power is a renewable energy power producer that develops and operates utility-scale solar and wind projects. It also caters to the public utility, and commercial and industrial (C&I) segments.
JSW Energy noted that the platform has a majority of its capacity secured through long-term power purchase agreements with “quality” off-takers holding strong credit ratings. With O2 Power’s platform having a C&I capacity of 596 MW, JSW Energy’s total C&I capacity will increase to 3,694 MW.
“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,” JSW Joint Managing Director and CEO Sharad Mahendra said.
PWC was as the transaction advisor to JSW Energy while Khaitan & Co and Herbert Smith provided legal counsel. KPMG did the financial and tax due diligence, and Wind Guard performed the technical due diligence for this transaction.
JSW Energy has a generation portfolio of 10 GW with 61% renewable capacity and has set a target to become a 20 GW generating company with 40 GW of storage capacity by 2030.
Autocar Professional had earlier reported that JSW Group, which recently bought a 35% stake in MG Motor India, is eyeing to set up a cell and battery manufacturing capacity of 50 GWh at its proposed facility by the end of this decade.
In the first phase, it is targeting a cell and battery manufacturing capacity of 10 GWh by 2026, and then expanding it further to 50 GWh in the second phase. ENDS