JSW Energy Lands Big Win with 45 MW Wind Project Deal from Reliance Power

JSW Energy Strikes Landmark Deal with Reliance Power, Acquires 45 MW Wind Project for Rs 132 Crore

JSW Energy has recently finalized a significant agreement with Reliance Power, acquiring a 45 MW wind project for an impressive Rs 132 crore. This deal marks a pivotal moment in JSW Energy’s journey towards expanding its renewable energy portfolio, underscoring its dedication to sustainability and clean energy initiatives.

By tapping into Reliance Power’s expertise and existing infrastructure in the renewable energy sector, JSW Energy aims to enhance the efficiency and output of the newly acquired project. The collaboration between JSW Energy and Reliance Power on the wind project signifies a joint effort towards sustainability and green energy initiatives.

Reliance Power holds the distinction of being the first company in India to launch the massive 45 MW Wind power project in Vashpet, located in the Sangli District of Maharashtra. The project operates a substantial 2.5 MW capacity turbine and reportedly commenced operations in 2013. Currently, it operates under a power off-take agreement with Adani Electricity.

Reliance Power has been diligently meeting its debt obligations with various banks such as DBS, ICICI, and Axis. The strategic Rs 132 crore wind power deal with JW Renewable Energy is a shrewd move by Reliance Power to aim for a debt-free status by the end of the current financial year. The transaction is anticipated to be concluded by May 21, 2024.

The company advocates for the utilization of renewable energy sources to reduce reliance on fossil fuels. It has diversified its portfolio by investing in sustainable power projects like solar, wind, and hydroelectricity across India. The overarching goal is to address environmental challenges, promote green energy, and support India in fulfilling its commitment to the Paris Agreement’s net-zero pledge.

Reliance Energy has amassed 0.7 million carbon credits through its Vashpet Wind project, with an estimated reduction of 74,828 MMT CO2 equivalent per annum. The company actively engages in market-based mechanisms such as the Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC) to adhere to international standards for its climate-friendly projects.

JSW Energy has officially confirmed the acquisition through a statement, indicating that a Business Transfer Agreement has been signed between the parties, with the transaction subject to customary approvals.

JSW Renewable Energy (Coated) Limited, a wholly-owned subsidiary of JSW Neo Energy Limited, currently operates with a capacity of 6.6 GW across thermal, hydro, solar, and wind generation. By acquiring the 45 MW Wind Project from Reliance Power, JSW Energy aims to progress towards becoming a 20 GW company, with significant investments in sectors like green hydrogen and energy storage.

Sajjan Jindal, Chairman and MD of JSW Group, expressed confidence in the transformative potential of these new-age businesses for all stakeholders, emphasizing the positive impact on shareholders, suppliers, customers, and employees. This landmark deal aligns with the company’s mission to minimize its operational impact on people, communities, and the environment, while offering sustainable solutions to boost business performance.

In 2021, JSW Energy set ambitious targets to reduce its carbon footprint by 50% by 2030 and achieve carbon neutrality by 2050 through a transition to renewable energy sources. The company aims to reach 10 GW installed capacity and 1 GWh of storage capacity by 2024.

Apart from the 45 MW wind project acquisition, JSW Energy plans to commission its first greenfield wind power project in Tuticorin later this year, showcasing its rapid growth in the energy sector and project execution capabilities. The company is at the forefront of India’s energy transition, aligning with the country’s commitments under the Paris Climate Agreement.

India, currently the world’s third-largest producer of renewable energy with a total installed capacity of 172 GW, must enhance its renewable energy resources to meet its NDC target and achieve net-zero emissions by 2070. The country aims to have half of its installed capacity sourced from non-fossil fuel-based energy sources.

The strategic acquisition of the 45 MW Wind Project from Reliance Power for Rs 132 crore by JSW Energy underscores its unwavering commitment to sustainability and positions it as a key player in India’s renewable energy landscape. This move is expected to propel the company towards its ambitious goal of becoming a 20 GW power generation giant by 2030.

Matt Lyons

Matt Lyons

Matt Lyons is the founder of Forestry & Carbon. Matt has over 25 years as a forestry consultant and is invoilved in numerous carbon credit offset projects.

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