JSW Neo Energy has made its largest acquisition by purchasing a 4.7 GW renewable energy platform from O2 Power for Rs 12,468 crore. The platform includes 4,100 MW of utility-scale renewable energy projects and 596 MW of commercial and industrial (C&I) capacity. Out of the total capacity, 3,722 MW is already secured under power purchase agreements (PPAs) with reliable customers. Another 974 MW is awaiting final approval.
The acquired energy platform offers a well-balanced mix of renewable energy sources, including 1.8 GW of solar power, 0.5 GW of wind energy, 1.6 GW of hybrid solutions, and 0.9 GW of complex renewable energy solutions like Round-The-Clock (RTC) and firm dispatch renewable energy (FDRE). The average price for electricity from this platform is Rs 3.37 per kilowatt-hour (KWh).
JSW Neo Energy expects to generate a steady EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 1,500 crore from the 2,259 MW capacity, which should be fully operational by June 2025. To reach the full 4,696 MW capacity by June 2027, the company plans to invest Rs 13,500 crore, with the aim of generating an annualized EBITDA of Rs 3,750 crore at that stage.
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Currently, O2 Power’s installed capacity stands at 1,343 MW, bringing JSW Neo Energy’s total installed capacity to 12,212 MW, with around 54% (6,554 MW) coming from renewable energy (RE).
Sharad Mahendra, the joint managing director and CEO of JSW Energy, expressed excitement about the acquisition, saying, “This is our largest acquisition so far, and it brings high-quality assets from resource-rich states. The experienced team from O2 Power will help us reach our 20 GW renewable energy target well before 2030. This also adds valuable connectivity for 900 MW, supporting our future growth.”
Pritesh Vinay, director and CFO of JSW Energy, added, “This acquisition strengthens our growth strategy by adding an excellent portfolio of projects. The transaction is valuable both in terms of ‘Build vs Buy’ and quality, and we will benefit from operational synergies and competitive financing.”
JSW Energy is a major private-sector power producer in India and is part of the JSW Group. The company operates across various power sectors, including power generation and transmission.
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In its recent financial report for Q3 FY25, JSW Energy saw a 27.4% drop in net profit to Rs 167.83 crore, compared to Rs 231.33 crore in Q3 FY24. Net sales also fell by 4.1% year-on-year, totaling Rs 2,438.88 crore. The company’s stock price decreased by 1.63% to Rs 482.20 on April 9, 2025. The stock market will remain closed today for Shri Mahavir Jayanti.
