JSW Energy To Move All Renewable Businesses To Wholly Owned Subsidiary
JSW Energy Ltd. has approved reorganisation of its renewable and thermal businesses separately as it looks to streamline its clean energy portfolio to aid fundraising and unlock shareholder value.
All existing and upcoming renewable energy units will be housed under JSW Energy Neo Ltd., a wholly owned subsidiary, the company said in an exchange filing. The company’s operational hydro projects—Karcham: 1,091 megawatts and Baspa II: 300MW—will also come under the unit.
“We’re strategically reorganising our company to more effectively support our growth strategy and to help unlock value for shareholders,” the company's Joint Managing Director and Chief Executive Officer Prashant Jain was quoted as saying in a statement.
The Sajjan Jindal-led company has laid out a growth plan to reach 20 gigawatts of power generation capacity by 2030, with the share of renewable energy in the portfolio rising to 85%—from 30% currently. At present, it has 4,559MW of installed capacity across thermal (3,158MW) and hydel and solar projects (1,401MW).
Currently, around 2,458MW of renewable projects are under construction, the company said. "2,218MW of wind and solar projects, for which power purchase agreements have already been signed, are expected be commissioned in the next 18-24 months, while the 240MW Kutehr hydro project is expected to be commissioned in the next 36-40 months."
With the commissioning of these projects, the company’s total generation capacity will increase to 7GW, with the share of renewable energy increasing to about 55%.