JSW Energy Ltd, one of the largest independent power producers in India, will buy Mytrah Energy (India) Pvt’s renewables portfolio for an enterprise value of $1.3 billion, according to a stock exchange filing on Wednesday.
The Mytrah portfolio consists of 10 wind SPVs with a generation capacity of 1.3GW and seven solar SPVs with a generation capacity of 422 MW, operating primarily in the southern, western and central parts of India. The assets have long-term PPA (power purchase agreement) with average remaining life of 18 years, the company said.
The all-cash deal increases JSW’s generation capacity by more than 35% to 6.5 gigawatts, according to the filing.
Deal to help JSW reach a target of 10GW capacity
The Mytrah assets will also help JSW reach a target of 10 GW of capacity ahead of a March 2025 deadline. The company plans to expand that to 20 GW by 2030, with 85% based on clean energy.
Prashant Jain, joint managing director and CEO of JSW Energy, said in a statement, “This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states,” adding that the company will continue to look for more such opportunities.
India’s renewables industry is expected to see significant development over the next few years with major investments from the Adani group and Reliance Industries Ltd, as well as state-run energy giants, as the country seeks to decarbonize its fossil fuels-driven economy.
On Monday, Indian billionaire Mukesh Ambani said that he expects Reliance’s green energy business to ‘outshine’ other businesses over the next 5 to 7 years.
Mytrah was among several renewable power producers facing financial stress earlier this year, Bloomberg reported.