EQT and Temasek owned O2 Power is set to have a new owner, JSW Neo Energy
The INR 125 billion deal will see JSW taking over the 4.69 GW strong portfolio of O2
This is the company’s largest acquisition to date, which will expand its locked-in generation capacity by 23%
O2 Power, the Indian renewable energy platform established by Swedish private equity firm EQT Infrastructure and Singapore’s Temasek, is set to be acquired by India’s JSW Neo Energy for a transaction value of around INR 124.68 billion ($1.47 billion).
The wholly-owned subsidiary of JSW Energy Limited, JSW Neo Energy will take over O2 Power Midco Holdings and O2 Energy SG under the deal. Once the deal closes, it will bring O2’s 4.696 GW of renewable energy capacity to JSW’s kitty.
Of this total, 2.259 GW will become operational by June 2025, 1.463 GW is currently under construction, and an additional 974 MW is in the pipeline to be commissioned by June 2027, across 7 states in India. It comprises 1.73 GW of solar, 475 MW pf wind, 1.58 GW of hybrid projects and 910 MW of round-the-clock (RTC)/ firm and dispatchable RE (FDRE) facilities.
O2’s Altra Xergi Power started the year 2025 by winning the Solar Energy Corporation of India’s (SECI) assured peak supply of 8,000 MWh of renewable energy under tariff-based competitive bidding. It quoted the winning tariff of INR 8.50 ($0.099)/kWh to win 200 MW of capacity. SECI launched the tender in September 2024 (see India’s SECI Invites Bidders For GW-Scale Renewable Energy Supply).
This is JSW Energy’s largest acquisition since its inception. This acquisition will expand JSW’s locked-in generation capacity by 23% from 20.012 GW to 24.708 GW. The proposed acquisition is scheduled to be completed on or before May 26, 2025.
“This is a very attractive acquisition – both from ‘Build vs Buy’ trade off as well as from a quality and value perspective when compared to all acquisitions in this space over recent times, and is consistent with our long track record of being prudent in capital allocation and focusing on high cash returns projects above our hurdle rate of midteen Equity IRR,” said JSW Energy Director (Finance) and CFO Pritesh Vinay.
JSW Energy targets to raise its power generation capacity to 10 GW by 2025 and further scale up to 20 GW of generation and 40 GWh/5 GW of storage capacity by 2030. It also aims to establish 1 GW PV module manufacturing capacity by April 2025 under Strategy 2.0.