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MUMBAI : Sajjan Jindal’s JSW Energy Ltd on Thursday said its board has approved the reorganisation of the company’s renewable and thermal businesses. All existing and upcoming renewable energy businesses will be housed under JSW Energy Neo Ltd, a wholly owned subsidiary of the company, it said in a statement.

This is in line with the announcement made by the company on 30 July that the board had approved the evaluation of re-organisation of these businesses, it added.

This move will help the company in building and streamlining its renewable portfolio and setting up a holding structure that will be efficient for fund-raising and unlocking value for shareholders.

Prashant Jain, joint managing director and CEO of JSW Energy, said: “JSW Energy has laid out a growth plan to reach 20 GW (gigawatts) of power generation capacity by 2030, with about 85% of this capacity via renewable energy. With our healthy balance sheet and proven project execution expertise, we are one of the best positioned companies in the sector to undertake robust growth plans in the renewable energy space. Given our plans, we are strategically re-organising our Company to more effectively support our growth strategy and to help unlock value for shareholders"

At present, JSW Energy has 4,559 MW of installed capacity across thermal (3,158 MW), and hydro & solar (1,401 MW). The company has laid out a growth plan to reach 20 GW capacity by 2030, with the share of renewable energy in the portfolio increasing to 85%, up from 30% currently.

JSW Neo Energy will be the vehicle for JSW Energy to drive the company’s growth plans in renewable energy – across generation, energy storage and green hydrogen, the statement said.

The company’s operational hydro projects (Karcham: 1,091 MW, and Baspa II 300 MW) and all upcoming renewable energy projects will be housed in subsidiaries under JSW Neo Energy. Currently, around 2,458 MW of renewable projects are under-construction: 2,218 MW of wind and solar projects, for which PPA (power purchase agreement) had been signed, are expected to be commissioned in the next 18-24 months, while the 240 MW 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 approximately 7 GW, with the share of renewable energy increasing from 30% now to about 55%.

JSW Energy has set a target for 50% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.

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