JSW Energy plans 15,000 cr capex in fiscal 2025, considers energy sector acquisitions

New Delhi: JSW Group subsidiary JSW Energy Ltd On Friday, plans for investment expenditure in the amount of ₹15,000 crore in the current financial year (FY25).

Addressing shareholders at the annual general meeting, chairman and managing director Sajjan Jindal said the company was also considering acquisitions in the energy sector.

He reiterated the company’s plans to invest a total of ₹$1.15 trillion to achieve a target of 20 GW of renewable energy capacity and 40 GWh of battery storage capacity under its “Strategy 2.0”.

“Our plan is to spend approx. ₹15,000 crore in the current fiscal year 2025. Moreover, your company is actively looking for acquisition opportunities in the energy sector,” he said.

Jindal said JSW Energy is on track to launch ongoing projects in power generation, energy storage and green hydrogen production.

“The growth capital raised through the recently completed QIP program allows us to strategically accelerate our earnings-driven growth plans,” he said.

In April, the company announced that it had successfully raised funds ₹5,000 crore through qualified institutional deposits to accelerate growth plans.

Currently, the total installed capacity is about 7.3 GW in thermal, hydro, solar and wind energy.

Thanks to additional bids for renewable projects with a capacity of 4 GW submitted through the auction, JSW Energy’s current locked-in generating capacity increased to 13.9 GW.

“Your company has also secured 3.4 gigawatt-hours of energy storage projects that are currently in development. This has been achieved due to strong growth in energy demand, a solid procurement environment, the company’s excellent execution capabilities and the strength of its balance sheet,” the CMD said.

There is currently around 2.6 GW of capacity under construction, and by the end of the financial year the installed capacity is expected to reach 10 GW.

Electricity Purchase Agreements

Last month, JSW Neo Energy Ltd, a subsidiary of JSW Energy Ltd, signed 1,025 MW of renewable power purchase agreements with Solar Energy Corp. of India Ltd (and 300 MW with Gujarat Urja Vikas Nigam Ltd.).

Noting that the company has expanded its presence in the energy space beyond renewable generation, Jindal said, “A large part of our growth and value will come from providing complete energy solutions to our customers. As part of this strategic shift, we have embarked on FDRE (fixed and dispatchable renewable energy) and hybrid projects that are specifically designed to address the variability of renewable energy, with the larger goal of providing end-to-end energy solutions. By encompassing generation, storage and green hydrogen, our horizons and our total addressable market have truly expanded.”

He said the company is entering the hardware manufacturing market to reduce supply chain risk. The company was also selected for the second tranche of the production incentive linked to solar module production.

At 14:54, JSW Energy shares were quoted at the price of ₹733.85, which is 1.21% higher than the previous close.