JSW Energy Arm To Acquire 1.75 GW Renewable Portfolio From Mytrah Energy For Rs 10,530 Crore

JSW Neo Energy, a wholly owned subsidiary of JSW Energy has agreed to acquire a portfolio of 1,753 MW of Renewable Energy generation capacity from Mytrah Energy Private Limited comprising of 17 special purpose vehicles (SPVs) and one ancillary SPV for about Rs 10,530 crore.

In a statement, JSW Energy informed that necessary definitive agreements have been signed between the parties and the transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size.

The transaction values the Mytrah Energy portfolio at an Enterprise Valuation of Rs 10,530 crore, after adjusting for net current assets.

The Mytrah Portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India.

The assets have a proven operational track record and long-term PPA with an average remaining life of around 18 years, the company said.

This is the largest acquisition made by JSW Energy since inception, and will leapfrog the current operational generation capacity by over 35 per cent - from 4,784 MW to 6,537 MW, it added.

Moreover, 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 around 9.1 GW – where the share of renewables increases to nearly 65 per cent.

Further, this is likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines, the company said.

Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: “We are excited to acquire Mytrah’s 1.75 GW of renewable energy portfolio which is value accretive to our shareholders on day one. This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being aleading player in India’s Energy Transition".

JSW Energy has set a target for a 50 per cent reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy.

The company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85 per cent.

Around 2.2 GW of renewable energy projects are currently under-construction and wind projects of 1.26 GW tied with SECI, are expected to be fully commissioned in the next 12-18 months, the company said.

Further, the company has received LoA for 300 MW project from SECI under its tranche XII auctions. With the acquisition of Mytrah Energy’s 1.75 GW, total platform capacity will increase to 9.1 GW, it added.