New Delhi: JSW Neo Energy Ltd, a subsidiary of JSW Energy Ltd, has signed a definitive agreement to acquire a 4,696 MW renewable energy platform from O2 Power Pooling Pte. Ltd. for ₹12,468 crore, the company announced. The transaction, valued at approximately $1.47 billion after adjusting for net current assets, is subject to approval by the Competition Commission of India (CCI) and other customary clearances.
The acquisition includes O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd., along with operational and pipeline assets spread across seven resource-rich states in India. Of the total capacity, 2,259 MW is expected to be operational by June 2025, while 1,463 MW is under construction. An additional 974 MW is in the pipeline, with commissioning planned by June 2027.
The move is set to increase JSW Energy’s installed capacity by 23%, from 20,012 MW to 24,708 MW. The platform’s blended average tariff stands at ₹3.37 per kWh with a remaining operational life of approximately 23 years.
“We are thrilled to announce the acquisition of O2 Power’s 4.7 GW renewable energy platform, which is JSW Energy’s largest acquisition since inception,” said Sharad Mahendra, Joint Managing Director and CEO, JSW Energy. “These high-quality assets strengthen our operational footprint across key resource-rich states. By combining our strengths, I am confident that we will deliver exceptional value to our stakeholders.”
The majority of the platform’s capacity is tied up under long-term power purchase agreements (PPA) with high-credit-rated off-takers. Additionally, its commercial and industrial (C&I) capacity of 596 MW takes JSW Energy’s total C&I capacity to 3,694 MW, including 2,653 MW tied to the JSW Group.
Pritesh Vinay, Director (Finance) and CFO, JSW Energy, highlighted the strategic and financial rationale behind the deal. “The acquisition of O2 Power’s renewable energy platform is significantly value accretive to the shareholders of JSW Energy. This is a very attractive acquisition, both from a ‘build vs buy’ trade-off and from a quality and value perspective,” he said. “JSW Energy remains focused on pursuing value-accretive opportunities that support our ambitious growth objectives in the power sector.”
The transaction involved multiple advisors, with PWC acting as the transaction advisor, Khaitan & Co and Herbert Smith providing legal counsel, KPMG conducting financial and tax due diligence, and Wind Guard carrying out technical evaluations.
