JSW Energy to undertake 20 GW renewable capacity expansion by 2030 at a cost of Rs 70,000 crore

JSW Energy is all set to achieve a 20 GW renewable capacity expansion target by 2030 at a cost of Rs 70,000 crore. The JSW board has approved an addition of 2,500 MW capacity by June 2024, where 200 MW will be added between January-March of 2022 followed by 150 MW every month.

Together, it will help the company reach 7GW renewable capacity, which will be 65 per cent of its portfolio compared to 4.6 GW at present. In addition, the company plans to participate in several bids and undertake projects to increase capacity to 10 GW by 2025.

In an interview to Financial Express, Prashant Jain, Joint MD, JSW Energy said, “Further, we will add 2 GW every year to reach 20 GW by 2030. This will entail an investment of Rs 27,000 crore by 2025 with an equity contribution of 30 per cent and a debt component of 70 per cent.

The company has reduced its debt by Rs 2,700 crore in FY21 to Rs 8,907 crore and improved its leverage substantially. Its net debt to equity is the lowest in the industry at 0.43 times compared to five times of the other industry players. JSW Energy has also reduced its receivables by 38 per cent y-o-y in FY21 to Rs 1,300 crore. The company boasts of Rs 2,000 crore in cash and cash equivalent as of March 31, 2021.

In the January-March quarter of 2021, total power generation dipped 8 per cent year on year (y-o-y), but the operating profit stayed flat, because JSW Energy received a compensation of Rs 100 crore from a buyer who did not purchase power last year. Its profit before tax was up by 6 per cent y-o-y in Q4FY21 because of lower interest cost.

Industry sources expect the power demand in FY22 to witness a 4-5 per cent y-o-y growth compared with a degrowth of 1.2 per cent a year ago. The growth will be led by industrial and commercial demand which were badly impacted due to lockdowns.

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