InvestorQ : Is it true that JSW group is getting very aggressive on the alternate energy front?
Aashna Tripathi made post

Is it true that JSW group is getting very aggressive on the alternate energy front?

Aditi Sharma answered.
1 month ago

That is true and the group is really getting aggressive on renewable energy. IN fact, JSW Neo Energy, subsidiary of JSW Energy , will make a high profile acquisitions in the renewable energy space. It will buy the 1.753 GW portfolio of renewable energy from Mytrah Energy (India). The stake has been valued at an EV of Rs10,530 crore. It is expected to be a major game changer for JSW Energy. This will enhance the total capacity of the JSW Energy group from 4,784 MW to 6,537 MW, with definitive agreements already been signed.

The overall renewable energy portfolio of Mytrah comprises of 10 wind SPVs with total capacity of 1,331 MW. It also has 7 Solar SPVs with total capacity of 422 MW. Most of these assets have a proven operational track record. JSW Energy has signed a long-term PPA (power purchase agreements) with average residual life of 18 years. For the JSW Energy, this buy adds value as it already has 2,500 MW of wind and hydro projects in the works. Mytrah will take the platform capacity to 9.1 GW with 65% share of renewable energy.

However, this is just the beginning and there are more aggressive plans ahead of the JSW group. For instance, this puts the company on track to scale 10 GW capacity by the year 2025 and further enhance the capacity to 20 GW by the year 2030. This expands their reach in the resource rich states. JSW is also looking at the lucrative green hydrogen area. This gels with the overall target of JSW to ensure 50% reduction in carbon footprint by 2030 and turn carbon neutral by 2050. Share of renewables is likely to touch 85% by the year 2030.

JSW Neo Energy was created by the restructuring of the Jindal group and was formed as a wholly owned subsidiary of JSW Energy, when the business was re-organised. The idea was the transfer and consolidated all the renewable and green business franchises of the Jindal group under one banner of JSW Neo. Now the company is also exploring foray into hydro pumped storage, battery energy storage as well as green hydrogen. JSW Energy looks to position itself as an integrated energy products and energy services company.