The Board of JSW Energy has approved a proposal to hive off its green energy business into a wholly-owned subsidiary JSW Neo Energy.
All the existing and upcoming renewable energy businesses will be housed under JSW Neo Energy.
The new company will drive growth plans in renewable energy across generation, energy storage and green hydrogen. The company will have operational hydro projects (Karcham: 1,091 MW and Baspa II 300 MW).
Currently, about 2,458 MW of renewable projects are under-construction, including the 2,218-MW of wind and solar projects, for which PPA has been signed and are expected be commissioned in the next 18-24 months.
The 240-MW Kutehr hydro project is expected to be commissioned in the next 36-40 months.
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With the commissioning of these projects, JSW Neo's total generation capacity will increase to 7 GW, with the share of renewable energy increasing from 30 per cent to about 55 per cent.
The move will help the company build and streamline its renewable portfolio and setting up a holding structure which is efficient for fund-raising and unlocking value for shareholders.
In May, JSW Hydro Energy had issued green bonds of $707 million, which was the largest hydro green bond issuance in Asia.
Prashant Jain, Joint Managing Director and CEO, JSW Energy, said the company has laid out a growth plan to reach 20 GW of power generation capacity by 2030, with about 85 per cent of this capacity via renewable energy.
“We have strategically re-organised the company to more effectively support our growth strategy and help unlock value for shareholders,” he added.
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At present, JSW Energy has 4,559 MW of installed capacity across thermal (3,158 MW) and green power (1,401 MW). The company has laid out a growth plan to reach 20 GW capacity by 2030, with the share of renewable energy in the portfolio increasing to 85 per cent from 30 per cent.
JSW Energy has set an ambitious target for 50 per cent reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.
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