JSW Energy Increases Capex to Rs 1.15 Lakh Crore for ‘Strategy 2.0’

Historical Context: JSW Energy, a part of the JSW Group, has been a significant player in India’s power sector since its inception in 1994. Over the years, the company has diversified its energy portfolio to include thermal, hydro, solar, and wind energy. This strategic shift aligns with global trends towards renewable energy and sustainability, reflecting India’s commitment to reducing carbon emissions and enhancing energy security.

Current Developments: JSW Energy has announced a substantial increase in its capital expenditure (capex) to Rs 1.15 lakh crore for its ‘Strategy 2.0’. This strategy aims to boost the company’s generation capacity to 20 gigawatts (GW) and storage capacity to 40 gigawatt-hours (GWh) by 2030. This is a significant rise from the previously announced Rs 85,000 crore.

Key Highlights:

• Strategic Vision: The increased capex is part of JSW Energy’s broader efforts to transition towards renewable energy and enhance its storage capabilities. This aligns with global trends towards cleaner and more sustainable energy solutions.
• Current Fiscal Plans: The company plans to invest about Rs 15,000 crore in the current fiscal year 2025, focusing on various renewable energy projects, including solar, wind, and energy storage technologies.
• Installed Capacity: As of now, JSW Energy’s installed capacity stands at approximately 7.3 GW, covering thermal, hydro, solar, and wind energy. The company has achieved a compound annual growth rate (CAGR) of 26 percent.
• Future Targets: With 2.6 GW of projects currently under construction and slated for commissioning during the current fiscal year, JSW Energy is on track to meet its 10 GW installed capacity target by FY2025.
• Financial Performance: The company reported a 10 percent year-on-year increase in revenue to Rs 11,941 crore and a 53 percent rise in EBITDA to Rs 5,837 crore. The Profit After Tax (PAT) grew by 17 percent to Rs 1,723 crore.
• Acquisition Plans: JSW Energy is actively scouting for acquisition opportunities in the power sector. The board has approved raising up to Rs 10,000 crore to acquire clean energy companies, aiming to achieve the 20 GW capacity target by 2030.
• Growth Capital: The company has strategically positioned itself to accelerate the execution of its growth plans through recently secured growth capital.

Summary in Bullet Points:

• JSW Energy increases capex to Rs 1.15 lakh crore for ‘Strategy 2.0’.
• Aims to achieve 20 GW generation capacity and 40 GWh storage capacity by 2030.
• Current fiscal year investment: Rs 15,000 crore in renewable energy projects.
• Installed capacity: 7.3 GW across thermal, hydro, solar, and wind energy.
• On track to meet 10 GW installed capacity target by FY2025.
• Financial performance: 10% revenue increase, 53% rise in EBITDA, 17% growth in PAT.
• Actively seeking acquisition opportunities in the power sector.
• Board approved raising up to Rs 10,000 crore for clean energy acquisitions.
• Strategically positioned to accelerate growth plans with secured capital.