JSW completes $1.44B acquisition of O2’s 4.7 GW renewable platform

India’s JSW Energy, through its wholly owned subsidiary JSW Neo Energy, has completed the acquisition of a 4.7 GW renewable energy platform from O2 Power for an enterprise value of approximately ₹124.7 billion (about USD 1.44 billion). 

O2 Power was established in 2020 by global investors EQT and Temasek. Its current installed capacity stands at 1,343 MW.

The acquired assets are expected to generate a steady state EBITDA of ₹15 billion from 2,259 MW of capacity that is expected to be operational by June. JSW Energy plans to invest an additional ₹135 billion in capital expenditure to reach the full 4,696 MW capacity by June 2027, when the steady state annualized EBITDA is projected to reach ₹37.5 billion.

“This acquisition brings high-quality assets across resource-rich states, along with management team and employees having a proven track record in planning and execution,” said Sharad Mahendra, Joint Managing Director and CEO of JSW Energy. “This strategic acquisition brings us closer to achieving our 20 GW capacity target significantly before 2030.”

The portfolio is diversified across seven Indian states and includes 1.8 GW of solar, 0.5 GW of wind, 1.6 GW of hybrid, and 0.9 GW of complex solutions like FDRE/RTC.  

“The completion of O2 Power acquisition underscores our commitment towards value accretive growth and prudent capital allocation. O2 Power has built an attractive portfolio and pipeline of projects which adds to our asset base and strengthens our operational capabilities and presence,” said Pritesh Vinay, Director (Finance) and CFO of JSW Energy. “Not only is this acquisition attractive – both from ‘Build vs Buy’ trade off as well as from a quality and value perspective – but also we will draw synergies operationally as well as enhance portfolio returns from a competitive financing package to fund this transaction.”