JSW Energy Plans Rs 15,000 Crore Capital Expenditure for FY25

At the AGM recently, JSW Energy’s Chairman and MD, Sajjan Jindal, announced the company’s plan to invest Rs.15,000 crore in capital expenditure for FY25 which aligns with JSW Energy’s ‘Strategy 2.0’ initiative, focused on boosting its power generation and storage capacity.

Long-Term Objectives

JSW Energy has set a target to spend approximately Rs.1.15 trillion to achieve 20 GW of power generation and 40 GWh of storage capacity along with commissioning ongoing projects in power generation, battery storage, and green hydrogen production. In April 2024, JSW Energy raised Rs.5,000 crore for the execution of its high-return growth plans through a qualified institutional placement (QIP), which was oversubscribed by 3.2 times, attracting interest from global and domestic investors.

Renewable Energy 

During FY24, JSW Energy secured 3.4 GW of renewable energy projects through competitive bidding. Additionally, the company expanded its project pipeline by 600 MW, resulting in a total locked-in capacity of 13.9 GW, marking a 42% increase compared to FY23 which majorly includes 2.4 GW of solar projects and 1 GW of wind projects.

Hybrid and Dispatchable Sources 

JSW Energy is expanding beyond renewable power generation by offering comprehensive energy solutions, including firm and dispatchable renewable energy (FDRE) and hybrid projects that aim to address the variability of renewable power and deliver energy solutions encompassing generation, storage, and green hydrogen.

Accomplishments 

In FY24, JSW Energy synchronized the 350 MW Ind-Barath Unit 1, with Unit 2 expected to follow in the current quarter. Furthermore, JSW Neo Energy Ltd, a subsidiary, signed power purchase agreements for 1,025 MW of renewable power with Solar Energy Corp. of India Ltd and 300 MW with Gujarat Urja Vikas Nigam Ltd.

Conclusion: JSW Energy’s capital expenditure plan for FY25 highlights its objectives and plans for expanding its footprint in the renewable energy sector. The company’s initiatives and capital-raising efforts position it favorably for growth and sustainability in the renewable energy market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.