A subsidiary of JSW Energy acquires O2 Power for Rs 12,468 crore

JSW Neo Energy Limited, a subsidiary of JSW Energy Ltd, has entered into a formal agreement to acquire O2 Power, a renewable energy platform jointly formed between EQT Partners of Sweden and Temasek Holdings of Singapore. The platform was valued at an enterprise valuation of Rs 12,468 crore ($1.47 billion) after adjustments for net assets traded.

JSW Energy has made its largest acquisition to date, it was announced in a media release.

According to JSW Energy, the platform, with a capacity of 2.25 GW, is expected to be operational by June 2025. JSW Energy’s presentation indicated an additional capital expenditure of Rs 13,000-14,000 crore, which will increase the platform’s total capacity to 4.6 GW in the coming years.

In a stock exchange filing, JSW Energy said: “O2 Power is a 4,696MW renewable energy platform – with 2,259MW to be operational by June 2025, 1,463MW currently under construction, and an additional 974MW in the project.” The pipeline, is scheduled to become operational by June 2027. The platform has an average blended tariff of Rs 3.37 per kWh with remaining life and capacity spans over 23 years in seven resource-rich states in India. This acquisition will lead to generation capacity exceeding The company’s capacity increased by 23%, from 20,012 megawatts to 24,708 megawatts.

The acquisition will include the acquisition of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd., is awaiting Competition Commission of India (CCI) approval and other standard regulatory approvals for a deal of this size, JSW Energy said.

Sharad Mahindra, Joint Managing Director and CEO, JSW Energy said: “We are pleased to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform, which is JSW Energy’s largest acquisition since inception. This landmark acquisition strengthens our position as a leading player in Energy sector in India. These high-quality assets strengthen our operational footprint across key resource-rich countries. It is a pleasure to welcome the experienced management team and employees of O2 power to the JSW Energy family Combining our strengths, I am confident that we will deliver exceptional value to our shareholders.