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MUMBAI : JSW Energy Ltd on Wednesday said unit JSW Neo Energy has agreed to acquire solar and wind power assets totalling 1,753 megawatts (MW) from Mytrah Energy (India) Pvt. Ltd. The deal, struck at an enterprise value of approximately 10,530 crore, is JSW Energy’s biggest acquisition yet.

The Mytrah portfolio consists of 10 wind special purpose vehicles (SPVs) of 1,331MW and seven solar SPVs of 422MW, operating primarily in the southern, western and central parts of India.

The assets have long-term power purchase agreements (PPAs) with an average remaining life of 18 years.

The transaction is subject to the approval of the Competition Commission of India (CCI) and other customary approvals.

The acquisition will propel JSW Energy’s operational generation capacity by over 35% to 6,537MW from 4,784MW.

The company said that with 2,500MW of under-construction wind and hydro projects likely to be commissioned in phases over the next 18-24 months, its capacity would increase to 9.1GW, with the share of renewables rising to 65%. The company expects this to help it achieve its renewable-led capacity growth target of 10GW by FY25, well ahead of timelines.

“This landmark deal demonstrates our strong commitment to achieving our vision of achieving 10GW 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. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value for our shareholders," said Prashant Jain, joint managing director and chief executive officer of JSW Energy.

“JSW Energy will continue to look for more such opportunities for value accretive acquisition to aid its already ambitious growth plans for this sector. Aside from generation, we also continue to pursue our organic pursuit of storage as well as green hydrogen and its derivatives play," Jain added.

Shares of JSW Energy rose 2.89% on BSE on Wednesday, while the benchmark Sensex index closed little changed.

KPMG India Services LLP was the transaction advisor to the company, while Khaitan and Co. was the legal advisor.

JSW Neo Energy is a vehicle formed as a part of the re-organization of JSW Energy’s business to own all the renewable/green and new energy businesses. The firm is evaluating opportunities to enter emerging energy businesses of hydro pumped storage, battery energy storage, green hydrogen, and becoming an energy products and services company.

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