JSW Energy is set to make a significant push in India’s clean energy landscape, announcing an investment of ₹14,000 crore to scale up the renewable energy capacity of recently acquired O2 Power to 4.7 gigawatts (GW) by June 2027. The company’s subsidiary, JSW Neo Energy Ltd, acquired the 4,696 MW renewable platform of O2 Power Pooling Pte Ltd for an enterprise value of ₹12,468 crore.

Of the total capacity, 2,259 MW is expected to be operational by June 2025, while 1,463 MW is currently under construction. An additional 974 MW is in the project pipeline, according to company disclosures.

JSW Energy’s current installed capacity under O2 Power stands at 1.3 GW. Joint Managing Director Sharad Mahendra confirmed during an analyst call that the company plans to achieve the 4.7 GW milestone through a capital expenditure of ₹13,000–14,000 crore over the next three years.

In addition to the O2 expansion, the company has outlined an aggressive capital outlay of ₹15,000–18,000 crore for FY26. This expenditure will cover both ongoing and new growth projects. For FY25, the actual capex was approximately ₹8,000 crore, lower than the initial guidance of ₹15,000 crore. “Because of certain delays in some of the ongoing projects and because we were accelerating the inorganic growth pipeline, we calibrated it down,” said Pritesh Vinay, Director (Finance) and CFO.

Mahendra also highlighted that JSW Energy is currently constructing 11.3 GW of power generation projects, all backed by long-term Power Purchase Agreements (PPAs). This includes 9.7 GW of renewable energy and the 1.6 GW Salboni ultra-supercritical thermal power project, marking the company’s re-entry into greenfield thermal after more than a decade.

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Beyond these, JSW Energy has a robust pipeline of approximately 4.9 GW where Letters of Intent or Letters of Award have been received, with PPAs yet to be finalised.

Regarding the recently acquired KSK Mahanadi thermal project, 1,800 MW is operational, and 95% is tied up under PPAs with fuel supply agreements in place. “We are currently integrating operations with JSW Energy and implementing a comprehensive plan to bring cost efficiencies,” Mahendra added.

The acquisition of the 3,600 MW KSK Mahanadi thermal asset was completed through National Company Law Tribunal (NCLT) proceedings at a resolution value of ₹16,084 crore, marking another key milestone in JSW Energy’s aggressive growth strategy across both renewable and thermal sectors.

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