JSW Energy Plans Rs 14,000 Crore Investment To Expand Renewable Capacity, Acquires O2 Power
Of the total, 2,259 MW will be operational by June 2025, while 1,463 MW is under construction, and an additional 974 MW are in the pipeline, the company had said.
(Representative image. Source: JSW Energy website)
JSW Energy would invest around Rs 14,000 crore to expand renewable energy capacity of recently acquired O2 Power to 4.7 gigawatt by 2027, and in fiscal 2026 it looks to spend up to Rs 18,000 crore to complete ongoing projects, senior company officials said. Its arm JSW Neo Energy Ltd. has acquired 4,696 MW renewable energy platform of O2 Power Pooling Pte Ltd (O2 Power) for an enterprise value of Rs 12,468 crore.
Of the total, 2,259 MW will be operational by June 2025, while 1,463 MW is under construction, and an additional 974 MW are in the pipeline, the company had said.
The current installed capacity of O2 Power is 1.3 GW and JSW Energy expects to increase it to 4.7 GW by June 2027 by undertaking capital expenditure of Rs 13,000-14,000 crore, JSW Energy Joint MD Sharad Mahendra said in an analyst call.
On the capex plan for fiscal 2026, Pritesh Vinay, company's Director (Finance) and CFO said the company is expecting to spend Rs 15,000-18,000 crore to complete the ongoing projects plus the pipeline of new growth projects that have started.
For fiscal 2025, it was about Rs 8,000 crore as against guidance of Rs 15,000 capex.
"Because of certain delays in some of the ongoing projects and because we were accelerating the inorganic growth pipeline, we calibrated it down," the CFO said.
Joint MD Mahendra said JSW Energy is constructing 11.3 GW of generation projects, all of which are fully tied up under long-term Power Purchase Agreements.
The under-construction portfolio includes 9.7 GW of renewable energy projects and 1.6 GW Salboni ultra-supercritical thermal power project which marks the company's investment in greenfield thermal after more than a decade, he said.
"Beyond this we have a robust project pipeline of approximately 4.9 GW of projects where Letters of Intent or Letters of Award have been secured and PPAs are yet to be signed." On KSK Mahanadi, he said currently 1,800 MW is operational which is 95% tied up under PPAs and has fuel supply agreements.
"We are currently integrating operations with JSW Energy and implementing comprehensive plan to bring cost efficiencies," he added.
JSW Energy had acquired the 3,600 MW thermal asset through NCLT proceedings for a total resolution amount of Rs 16,084 crore.
