JSW Energy ahead of schedule to achieve 10 GW of installed capacity: Prashant Jain | The Financial Express

JSW Energy ahead of schedule to achieve 10 GW of installed capacity: Prashant Jain

On the green hydrogen front, the company is working with the government and technology suppliers, but it would be sometime before commercial projects start.

JSW Energy ahead of schedule to achieve 10 GW of installed capacity: Prashant Jain

JSW Energy expects to achieve its installed capacity target of 10 GW ahead of schedule, even as the company would stick to its earlier capex guidance of Rs 10,000 crore per annum for the next 10 years.

The firm, led by industrialist Sajjan Jindal, had earlier set a target of achieving 10 GW capacity by FY25 and then doubling it to 20 GW by FY30.

“We are ahead of the schedule on our guided trajectory and will achieve our target of 10 GW probably in the next 18 months. We had also guided for a capex of about Rs 10,000 crore per year for the next 10 years, which is also on track,” JSW Energy joint managing director and CEO Prashant Jain told FE in an interview.

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“For the 2.5 GW capacity under construction, the planned capex is about Rs 16,000 crore of which we have already spent about Rs 4,500 crore. We will spend another Rs 4,000 crore in this financial year, and the total capex for this year would be about Rs 8,500 crore. The capex for the next financial year would be about Rs 8,000 crore to Rs 10,000 crore,” he added.

The firm’s current locked-in portfolio of 9.9 GW comprises 61% renewable capacity. This is expected to rise to about 81% renewable energy by FY30. The capex would be raised from both internal accruals and debt.

JSW Energy’s new-age businesses on the green energy front includes lithium-ion battery, green hydrogen, battery energy storage solutions (for which it won a bid from Solar Energy Corporation of India), hydel pumped storage (inked an agreement with Maharashtra government to set up a 960 MW project) and hydel project (subsidiary JSW Neo Energy got a letter of intent from the Himachal Pradesh government), among others. “These are good opportunities for us, and we are confident of converting these into reality,” he added.

On the green hydrogen front, the company is working with the government and technology suppliers, but it would be sometime before commercial projects start.

On the acquisition of Mytrah Energy, Jain said the company had got the Competition Commission’s approval and is in the process of getting lenders’ approval. The deal is expected to be closed in this quarter.

Earlier in August, in its largest-ever acquisition, JSW Energy had signed an agreement to acquire Mytrah Energy’s 1,753 MW renewable energy portfolio for an enterprise value of about `10,530 crore. The deal is being executed through its wholly owned subsidiary JSW Neo Energy.

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On the industry in general, Jain said that the rest of the financial year would be good as the power demand will be robust, even though the merchant market is a “bit subdued”.

“We continue to see inflationary pressure on new business due to higher commodity prices and higher interest costs, but all-in-all the power sector is looking quite optimistic and vibrant,” he added.

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First published on: 03-11-2022 at 00:05 IST