JSW Energy said on Wednesday that its arm JSW Neo Energy will buy a portfolio of 1.75 gigawatt (GW) renewable energy assets from Mytrah Energy for Rs 10,530 crore.
This is the largest acquisition by JSW Energy since its inception, comprising 17 special purpose vehicles and 1 ancillary SPV. The transaction is subject to approval by the Competition Commission of India (CCI), the company said.
With this acquisition, JSW Energy’s current operational generation capacity will go up by over 35 per cent from 4.78 GW to 6.53 GW.
About 2.5 GW of under-construction wind and hydro projects will be commissioned in phases over the next 18-24 months, the company said.
The total installed capacity as a result will increase to 9.1 GW, with the share of renewables rising to 65 per cent.
The acquisition is likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines, it said.
The Mytrah portfolio consists of 10 wind SPVs with a generation capacity of 1.33 GW and 7 solar SPVs with a generation capacity of 422 MW (or 0.42 GW), operating primarily in southern, western and central India.
The assets have long-term PPAs with an average remaining life of 18 years, the firm said.
“We are excited to acquire Mytrah’s 1.75 GW of renewable energy portfolio which is value accretive to our shareholders. This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s energy transition,” said Prashant Jain, joint managing director and CEO of JSW Energy.
He added that the acquisition would diversify the operating footprint of the company across states.
