JSW Energy is actively evaluating over half a dozen acquisition opportunities in the renewable energy space as financial investors look to divest their holdings. “Fund lives are ending for some of these investors. Seven such sale processes are underway, and we are looking at all of them,” said Pritesh Vinay, Chief Financial Officer and Director (Finance) at JSW Energy. While Vinay did not specify the deals, he mentioned that these projects or companies have capacities ranging from 500 MW to 3,000-4,000 MW each.
Currently, JSW Energy boasts a renewable capacity of 7.3 GW and aims to reach 10 GW by FY25 and 20 GW by 2030. In comparison, competitors like Adani Green Energy and ReNew Power have either surpassed the 10 GW mark or are on the verge of achieving it in operational renewable energy capacities.
Last month, JSW Energy raised ₹5,000 crore through a qualified institutional placement (QIP) of its shares. Vinay stated that most of these funds will be directed towards the renewable energy business. Additionally, the company plans to invest ₹15,000 crore in FY25 to complete its ongoing project pipeline and those projects awaiting power purchase agreements (PPAs).
JSW Neo Energy, a subsidiary of JSW Energy, recently completed the acquisition of 1,753 MW of renewable energy assets from Mytrah Energy. The company, which had previously slowed down its solar project developments, is now accelerating its solar plans due to improved project economics. “In the last six to seven months, prices of solar panels have decreased in China. Solar tariffs have gone up by 10%, and consequently, the cost to build has dropped by 20-30%,” Vinay explained. He added that the company would undertake projects where returns are commensurate with costs and available resources.
Furthermore, JSW Energy plans to bid for more hybrid storage and firm and dispatchable renewable energy (FDRE) tenders. “These are complex projects where entry barriers are high and return potential is significant,” Vinay said. The company is exploring storage solutions, including hydro pumped storage and battery energy solutions.
In a strategic move to support JSW Steel, the company signed a memorandum of understanding (MoU) last year to build 6,200 MW of green power by 2030. In the first phase, it expects to sign PPAs for about 1,000 MW in the coming months.
However, JSW Energy has no plans to develop new greenfield thermal projects in the near future. “We have not seen visibility of PPAs for thermal projects. We will set up such projects only when there is a confirmed buyer for the power,” Vinay noted.
JSW Energy’s aggressive expansion in the renewable energy sector underscores its commitment to sustainable growth and its strategic shift towards greener energy solutions. The company’s focus on acquisitions, investments in renewable projects, and innovative storage solutions positions it as a significant player in India’s transition to clean energy.
