JSW Neo Energy, a wholly owned subsidiary of JSW Energy, will buy a portfolio of 1,753 MW of renewable energy generation capacity from Mytrah Energy (India) Private Limited for Rs 10,530 crore.
“Necessary definitive agreements have been signed between the parties. The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size,” the company said in a regulatory filing on Wednesday (August 10).
The portfolio comprises 17 special purpose vehicles (SPV) and 1 ancillary SPV. This is the largest acquisition made by JSW Energy since inception, and will leapfrog the current operational generation capacity by over 35 per cent – from 4,784 MW to 6,537 MW, the company said.
The Mytrah portfolio consists of 10 wind SPVs with a generation capacity of 1,331 MW and 7 solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of 18 years.
With about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW—where the share of renewables increases to 65 per cent.
This is likely to help the company achieve its renewables-led capacity growth target of 10 GW by FY25, well ahead of timelines, JSW Energy added.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: “This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders.”
JSW Energy has set an ambitious target for a 50 per cent reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy.
