JSW Neo Energy, a wholly owned subsidiary of JSW Energy will acquire a portfolio of 1,753 MW of Renewable Energy generation capacity from Mytrah Energy (India) Private Limited for Rs 10,530 crore, the company said today.
“Necessary definitive agreements have been signed between the parties. The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size,” the company said in a regulatory filing.
The Mytrah Portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of 18 years.
“This is the largest acquisition made by JSW Energy since inception, and will leapfrog the current operational generation capacity by over 35%-from 4,784 MW to 6,537 MW,” the company said.
The company’s scrip was trading at Rs 314.35, up 0.80% on the BSE Wednesday morning.
With about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW– where the share of renewables increases to 65%.
This is also likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines, it said.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: “This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states,” adding that the company will continue to look for more such opportunities.
Aside from generation, JSW Energy will also continue to pursue its organic pursuit of storage as well as green hydrogen and its derivatives play.
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 relative value when compared to all acquisitions in this space in recent times. We have a multipronged asset optimisation, performance improvement and capital structure optimisation plan over the next 12-24 months –which will drive significant value creation over the life of the assets.”
JSW Energy has set a target for a 50% reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85%. Around 2.2 GW of renewable energy projects are currently under-construction, Wind projects of 1.26 GW tied with SECI, are expected to be fully commissioned in the next 12-18 months.
With the acquisition of Mytrah Energy’s 1.75 GW, total platform capacity will increase to 9.1 GW.
