After its recent acquisitions, JSW Energy plans to increase capacity targets and aims to achieve them earlier than it planned, especially in the renewable energy (RE) segment.
Last month, JSW Neo Energy, an arm of JSW Energy, bought a 4,696 MW RE platform from O2 Power for around Rs 12,468 crore. The firm has also acquired 125 MW renewable assets from the Hetero Group for Rs 630 crore.
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JSW Energy is in the process of buying KSK Mahanadi Power Company, which operates a coal-based power plant in Chhattisgarh.
“After the recent acquisition of the O2 Power portfolio of 4.69 GW, the company now targets 12 GW of installed capacity by June 2025, as against the earlier target of 10 GW by March 2025,” Axis Securities said in a recent report.
The company plans to increase its installed capacity to 20 GW by 2030. Post the O2 Power acquisition, the company’s total locked-in capacity has increased from 19 GW to 24.7 GW, Axis Securities said.
When contacted for a comment, JSW Energy did not respond to the mail.
“The company is on track to achieve its targets well before 2030. It also plans to expand the storage capacity to 40 GWh/5 GW by 2030, from the current locked-in capacity of 16.2 GWh,” it said.
The company estimates a total capex of Rs 115,000 crore by 2030 towards this planned expansion, which would provide a boost to its growth prospects.
The company in the past few years has acquired power assets with prudent capital allocation, targeting mid- to high-teen equity IRRs. It acquired 700 MW Ind-Barath in December 2022 and 1,753 MW RE portfolio of Mytrah Energy in March 2023, Axis said.
Going forward, the majority of the company’s expansion is expected to be from renewable energy, with ~96% of under-construction capacity and 100% of pipeline capacity being renewable capacity. The company targets to enhance renewable capacity of two-thirds of its total installed capacity by 2030 and is well on track to achieve the same.
Out of JSW Energy’s total locked-in capacity of 24.7 GW, ~20.9 GW is from RE capacity.
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