JSW Energy completes acquisition of O2 Power

JSW Energy has completed the acquisition of 4.7 GW renewable energy platform O2 Power at an enterprise valuation of around INR 12,468 crore.

April 9, 2025 Uma Gupta

O2 Power's 250 MW solar plant in Rajasthan

Image: O2 Power

JSW Neo Energy, an arm of JSW Energy, has completed the acquisition of O2 Power at an enterprise valuation of around INR 12,468 crore.

O2 Power is a renewable energy platform with a portfolio of 4.7 GW. It was jointly established by global investors EQT and Temasek in 2020. As of FY 2025, O2 Power’s installed capacity stands at 1,343 MW.

Consequent upon O2 Power acquisition, JSW Energy’s proforma FY 2025 installed capacity stands at 12,212 MW, with RE capacity accounting for 6,554 MW (54% of total). The company will have a steady-state EBITDA generation of INR 1,500 crore from the 2,259 MW that is likely to become operational by June 2025. Additionally, INR 13,500 crore of capital expenditure will be incurred to reach 4,696 MW of capacity by June 2027. JSW will have a steady-state annualised EBITDA of INR 3,750 crore from operations of this capacity.

Sharad Mahendra, joint managing director and CEO of JSW Energy, “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. [It] brings us closer to achieving our 20 GW capacity target significantly before 2030. O2 Power also brings additional connectivity for 900 MW, which will facilitate our future growth.”

Pritesh Vinay, director (finance) and CFO of JSW Energy, said, “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. 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.”

The acquired platform comprises 4,100 MW of utility-scale RE projects and 596 MW of C&I capacity. Of the total platform capacity, 3,722 MW is tied-up under power purchase agreements with high-credit-quality off-takers comprising both utility scale and commercial and industrial (C&I) customers, while 974 MW of capacity has received Letter of Awards/Intent and is awaiting PPA signing.

The acquired assets are spread across seven resource-rich states, primarily operating in western India. The portfolio features a well-diversified energy mix, including 1.8 GW of solar, 0.5 GW of wind, 1.6 GW of hybrid and 0.9 GW of complex solutions like firm and dispatchable renewable power/round-the-clock power projects. The platform has a blended average tariff of INR 3.37/kWh.

PWC was the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors. KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.