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) at an enterprise value of about ₹10,530 crore.
The portfolio comprises 17 special purpose vehicles (SPV) and 1 ancillary SPV. This is the largest acquisition made by JSW Energy since inception, and will leapfrog the current operational generation capacity by over 35 per cent - from 4,784 MW to 6,537 MW, JSW Energy said in a statement.
Necessary definitive agreements have been signed between the two parties. The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals.
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 around 18 years.
“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, the JSW Energy platform capacity gets enhanced to about 9.1 GW – where the share of renewables increases to about 65 per cent. Further, this is likely to help the company achieve its renewables-led capacity growth target of 10 GW by FY25, well ahead of timelines,” JSW Energy added.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said, “This acquisition further strengthens and diversifies our operating footprint across key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio. JSW Energy will continue to look for more such opportunities for value accretive acquisition. We also continue to pursue our organic pursuit of storage as well as green hydrogen and its derivatives play.”
JSW Energy has set a target of 50 per cent reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning to renewable energy. The company is looking to achieve 20 GW capacity by 2030, with the share of renewable energy increasing to 85 per cent.
Around 2.2 GW of renewable energy projects are currently under construction, 1.26 GW of wind projects tied with SECI are expected to be fully commissioned in the next 12-18 months. Further, the company has received an LoA for a 300 MW project from SECI under its tranche XII auctions. With the acquisition of Mytrah Energy’s 1.75 GW, the total platform capacity will increase to 9.1 GW.
JSW Neo Energy , a wholly-owned subsidiary of JSW Energy Ltd, has been formed as part of a re-organisation of businesses to own all the renewable/ green and new energy businesses. The company is evaluating opportunities to foray into the emerging energy businesses of hydro pumped storage, battery energy storage, green hydrogen, and becoming an energy products and services company.