JSW Neo Energy Ltd, a wholly-owned subsidiary of JSW Energy Ltd, has completed the acquisition of renewable energy platform O2 Power for an enterprise value of around ₹12,468 crore.
European alternative asset manager EQT and Singapore’s Temasek held 51% and 49%, respectively, in O2 Power that has an overall capacity of 4.7 GW renewable energy, including projects in pipeline. With the completion of this transaction, both the global investments majors have exited the company, founded by former ReNew Power executives Parag Sharma, Peeyush Mohit, and Rakesh Garg.
The platform was jointly established by EQT and Temasek in 2020.
In September, Mint reported that JSW is among the shortlisted bidders to buy O2 Power. The other bidders in the fray were New York-based alternative investment firm Stonepeak, I Squared Capital, and Macquarie Group.
A statement from JSW Energy said that as of FY25, O2 Power’s installed capacity stands at 1,343 MW. Consequently, JSW Energy’s FY25 installed capacity stands at 12,212 MW (12.21 GW), with renewable energy capacity accounting for 6,554 MW, which makes for about 54% of its total energy generation capacity.
JSW’s clean energy push
Sharad Mahendra, joint managing director and CEO of JSW Energy, said: “We are pleased to announce the completion of JSW Energy’s largest acquisition to date of 4.7 GW of O2 Power. 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.”
He noted that the development bring JSW Energy closer to achieving its 20 GW renewable energy capacity target significantly before 2030.
Pritesh Vinay, director (finance) and CFO of JSW Energy, said: “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 renewable energy projects and commercial & industrial (C&I) capacity of 596 MW. Of the total platform capacity, 3,722 MW is tied up under power purchase agreements (PPAs) with high-credit-quality off-takers comprising both utility scale and commercial and industrial customers. Another 974 MW of capacity has received letter of awards/intent and are awaiting PPA signing, the statement said.
PwC was the transaction advisor to the company. 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, the company statement said.
