JSW Energy bumps capex to Rs 1.15 lakh crore for 'Strategy 2.0'

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JSW Energy plans to allocate about Rs 1.15 lakh crore in capital expenditure over the next six years for its 'Strategy 2.0', aiming to achieve a generation capacity of 20 gigawatts (GW) and a storage capacity of 40 gigawatt-hours (GWh) by 2030, group chairman and managing director Sajjan Jindal told shareholders on July 5.

The announcement marks an increase from the previously announced Rs 85,000 crore for the strategy.

"With tailwinds such as healthy underlying power demand, a strong pipeline of under-development capacity and a robust capital structure on the balance sheet, I am confident of accelerating the 2030 targets by a few years," Jindal said in his address at the company's annual general meeting.

The strategy is part of JSW Energy's broader efforts to transition towards renewable energy and enhance its storage capabilities, aligning with global trends towards cleaner and more sustainable energy solutions. The company plans to spend about Rs 15,000 crore in the current fiscal 2025

The investment will likely be directed towards various renewable energy projects, including solar, wind, and energy storage technologies.

As of now, the company's installed capacity stands at approximately 7.3 GW, encompassing thermal, hydro, solar, and wind energy, reflecting a compound annual growth rate (CAGR) of 26 percent.

Jindal said the company successfully secured additional renewable project bids totaling 4.0 GW, taking its locked-in generation capacity to 13.9 GW.

"With 2.6 GW of projects, which are currently under construction and which are slated for commissioning during the current fiscal year, your company is on track to meet the 10 GW installed capacity target by FY2025, " he said.

Revenue increased 10 percent year-on-year to Rs 11,941 crore. while EBITDA was at Rs 5,837 crore, up by 53 percent year-on-year, Jindal shared.

"We recorded the highest-ever EBITDA and the second highest ever Profit After Tax (PAT) in our history," he said, adding the company would continue to keep the net debt to EBITDA multiple below 4.0x. It reported a 17 percent growth in PAT at ₹ 1,723 crore.

In FY24, JSW Energy  secured 3.4 GW of renewable energy projects through competitive bidding. The company has added another 600 MW to its project pipeline this year, bringing the total locked-in generation capacity to 13.9 GW.

Jindal said that company  is "actively scouting for acquisition opportunities in the power sector."

In May, the board  approved raising up to Rs 10,000 crore in one or more tranches, as the power producer looks to snap up clean energy companies put up on sale in the market amid targets to achieve 20 GW capacity by 2030.

"Moving ahead, the company is on track to commission ongoing projects for power generation, battery storage and green hydrogen production. The growth capital secured through the recently completed QIP strategically positions us to accelerate the execution of our returns accretive growth plans," Jindal added.