JSW Energy looks at acquisitions in green energy – EQ
In Short : JSW Energy is exploring acquisitions in the green energy sector. This strategic move aims to expand its renewable energy portfolio, enhance its sustainable energy capacity, and support India’s transition to a cleaner energy future.
In Detail : JSW Neo Energy, a subsidiary of JSW Energy last year completed acquisition of 1,753 MW of renewable energy assets from Mytrah Energy.
JSW Energy is evaluating over half a dozen deals in renewable energy space where financial investors are looking to sell their investments. “Fund lives are ending for some of these investors. Seven such sale processes are under way and we are looking at all of them,” said Pritesh Vinay , chief financial officer and director (finance), JSW Energy. While he did not name the deals, these projects/companies have a capacity between 500 MW to 3000-4000 MW each.
The company has renewable capacity of 7.3GW now and plans to reach 10GW by FY25 and 20 GW of RE by 2030. To put these numbers in context, its peers Adani Green Eneegy and Renew have either crossed 10GW mark or looking to cross the milestone shortly in operational RE capacities.
Last month, the company raised Rs 5,000 crore through qualified institutional placement of its shares and company would use most of it for renewable energy business, Vinay said. It will also invest Rs 15,000 crore in FY25 to complete ongoing pipeline of projects and those projects where power purchase agreements are yet to be signed, added Vinay.
JSW Neo Energy, a subsidiary of JSW Energy last year completed acquisition of 1,753 MW of renewable energy assets from Mytrah Energy.
Earlier, JSW Energy had gone slow on building solar projects, is now fast tracking it’s solar plans. Vinay attributed to change in economics of such projects. “In the last six to seven months, prices of solar panels have corrected in China. Solar tariffs have gone up 10% and hence cost to build is down 20-30%,” he said, adding the company will take up projects where returns are commensurate with costs and it’s resources. .
Vinay said the company will bid more hybrid storage and FDRE tenders. FDRE refers to firm and dispatchable renewable energy. “These are complex projects where entry barriers are high and return potential is high,” he said. The company will look at storage solutions both hydro pumped storage and battery energy solutions , he said.
Last year, it signed a MOU to build 6,200 MW of green power for JSW Steel by 2030. In the first phase, it expects to sign PPA of about 1,000 MW over the next few months.
However, the company won’t build any greenfield thermal projects in the near future. “We have not seen visibility of PPAs there. We will set it up only when there is somebody who will buy this power,” he said.
