The Financial Express
JSW Neo Energy, a wholly-owned subsidiary of JSW Energy, has completed the acquisition of Mytrah Energy’s renewable energy assets through a two-step process. JSW Energy had signed an agreement in August last year to acquire Mytrah Energy’s 1,753 MW renewable energy portfolio for an enterprise value of about Rs 10,530 crore, which was its largest-ever acquisition. The deal was being executed through its wholly-owned subsidiary JSW Neo Energy.
The acquisition includes 15 special purpose vehicles (SPVs) and 13 ancillary SPVs with a total 1,449 MW installed renewable energy capacity. Following the completion of the deal, the SPVs have now become subsidiaries of JSW Neo and accordingly step-down subsidiaries of JSW Energy.
The Mytrah portfolio of 1,753 MW comprises 1,331 MW of wind capacity and 422 MW of solar capacity operating primarily in the southern, western and central parts of India. The assets have long-term power purchase agreement with an average remaining life of about 17 years, it said. “This takes us a step closer to our vision of expanding our green energy portfolio and becoming a significant player in this space by 2025,” JSW Energy CMD Sajjan Jindal said.
According to Prashant Jain, Joint Managing Director and CEO of JSW Energy, “This acquisition further strengthens and diversifies our operating footprint across various key resource rich states, increasing optionality to grow the portfolio further. We are confident of significantly improving the operating performance of the Mytrah portfolio by implementing a comprehensive asset optimisation and performance improvement plan by leveraging our operating and financing expertise. The acquisition would help the company in advancing towards its capacity target of 10 GW by FY 2025, well ahead of time.”
This acquisition will help JSW Energy increase its current operational capacity by over 36% to 6,564 MW from 4,811 MW. Moreover, with about 2.9 GW of under-construction projects that are likely to be commissioned in phases over the next 12-18 months, JSW Energy is slated to reach its 10 GW target by FY2025, with the share of renewables increasing to about 61%.
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The Financial Express