JSW Energy Acquires Mytrah's Solar Assets To Fuel Renewable Growth
The deal will help the company achieve its renewable-led capacity growth target of 10 GW by financial year 2025.
Sajjan Jindal-led JSW Energy announced on Wednesday that its unit JSW Neo Energy has agreed to acquire Mytrah Energy’s 1,753 MW renewable energy generation capacity for an enterprise value of about Rs 10,530 crore. This is the largest acquisition made by JSW Energy since inception and involves acquisition of 17 special purpose vehicles (SPVs) and one ancillary SPV.
The deal is being executed through JSW Neo Energy Limited, a wholly owned subsidiary of the company, and will help the company achieve its renewable-led capacity growth target of 10 GW by financial year 2025 (FY25).
Mytrah Energy’s portfolio consists of 10 wind SPVs with a generation capacity of 1,331 MW and seven solar SPVs with a generation capacity of 422 MW, operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term power purchase agreements (PPAs) with an average remaining life of 18 years, JSW Energy said in a regulatory update.
The transaction, which is subject to receipt of the necessary regulatory and other customary approvals, is expected to be completed by 15 November 2022 subject to fulfilment of conditions precedent set out in SPA.
"Upon consummation of the transaction, the said 18 subsidiaries of Mytrah Energy (India) Private Limited (MEIPL) would become subsidiaries of JSW Neo Energy Limited (JSWNEL) and step-down subsidiaries of the company," the company said.
Since the commissioning of the company’s first 2x130 MW thermal power plant at Vijayanagar, Karnataka, the company has evolved into one of India’s leading power companies. Over the years, JSW Energy has steadily enhanced power generation capacity from 260 MW in 2000 to 4.6 GW in 2021, having a portfolio of more than 3,100 MW in thermal power, 1,400 MW in hydropower, and 10 MW in solar power.
The company has set a target to reach 10 GW by 2025, with the share of renewable energy increasing to 70 per cent and reach 20 GW by 2030, with the renewable share pegged at 85 per cent.
The acquisition of Mytrah’s renewable energy assets will leapfrog the current operational generation capacity by over 35 per cent from 4,784 MW to 6,537 MW.
Prashant Jain, joint managing director and chief executive officer of JSW Energy, said: “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. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states," adding that the company will continue to look for more such opportunities.
With about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW — where the share of renewables increases to 65 per cent.
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