JSW Energy, spearheaded by Chairman and Managing Director Sajjan Jindal, has been achieving big landmarks in keeping with its focus on renewables and storage. The company has targeted a 20 GW generation capacity and 40 GWh storage capacity by 2030, based on a capital expenditure (capex) of around ₹1,15,000 crore.
However, in perspective, the company for the fiscal year 2024 has managed to show great progress in the expansion plan by clocking 680 MW of greenfield capacity, which has helped the net generation of the company rise by 27% year-on-year to 27.9 billion units. Consequently, JSW Energy’s total revenue grew 10% year-on-year to ₹11,941 crore. The company reported ₹5,837 crore in EBITDA for the fiscal year as compared to ₹3,825 crore in the prior year, resulting in 53% growth. The growth was supported by commissioning feasibility and more favorable grid injections, which were to some extent offset by somewhat denser heat rates for the JSWEP SBU.
FY 2025 Initiatives
For FY 2025, JSW Energy has lined up a capex of ₹15,000 crore and will raise it through a combination of equity capital and debt. Jindal also told shareholders at the AGM, “Your company expects to be spending around ₹15,000 crore in the current fiscal year and further accelerate their ambitions. Additionally, we are very active in scouting for acquisition opportunities in the power sector.”
The Project Pipeline and Renewable Energy in Projects
The company has a strong current pipeline of over 3 GW; in addition, owing to premium tariff regulations that expired on March 31, it added 600 MW of tenders. As such, the company now has a pipeline of 13.9 GW, which represents a significant increase of 42% compared to last fiscal. This project pipeline underscores the company’s commitment to renewable energy growth and expansion.
Recent FY Developments
The recent sync of Ind Barath Unit 1 (350 MW) marks a major development. Sajjan Jindal also took to social media to share his excitement about this milestone, stating, ”Second 350 MW from the same plant is expected to come under sync this quarter, showcasing our aggressive project execution capabilities.” It is very clear from these developments that JSW Energy seriously wants to increase its generation capacity, as it seems to be responding to the increasing energy requirements of the country.
In April 2024, in a move aimed at strengthening itself financially to fund growth, JSW Energy successfully raised ₹5,000 crore through a Qualified Institutional Placement (QIP) of shares. This is the largest QIP in India’s power sector and the company’s first equity issue in 14 years. The issue was subscribed to more than 3.2 times. Attracting very high interest from high-quality global and domestic institutions. This capital injection will be used to fund JSW Energy’s growth plan, which is on the aggressive side.
While JSW Energy pivots even closer to fleet power, it takes significant steps toward the creation of energy products and services. The company is pursuing a 6,500-ton-per-year production capacity for the construction of its first green hydrogen plant with the help of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Program. This is well aligned with green hydrogen being seen as not just the de facto energy carrier of the future but also as a sustainable product.
Strategic Direction and Outlook
The company’s strategic direction was summarized as follows by Sajjan Jindal: Proactive approach of the company to capitalize on energy sector growth.” As a result, the company is in a good position to align with energy security and help make an impact on India’s decarbonization objectives, which shapes us as a future-proof, forward-looking, return-focused innovative plant for future opportunities.
The ambitious plan by JSW Energy, both in terms of capex and strategically aligning renewables and storage businesses, reiterates its position in the era of renewable-focused business models. As a leadership strategy, renewable projects are the operation’s new focus, supported by capacity commissioning and about 250 MW of new tenders and feasibility studies with favorable grid injections performed over the period, partially offset by somewhat higher heat rates for the JSWEP SBU.
Conclusion
JSW Energy is a well-established energy giant providing reliable and renewable energy solutions backed by sustainable manufacturing practices. JSW Energy, through its significant capex plans, successful project execution, and strategic financial maneuvers, reaffirms its commitment to become a leading player in India’s energy landscape. JSW Energy is expanding its renewable energy footprints and exploring the latest technologies, thereby helping in achieving the green energy transition for the country and accountable decarbonization for the future with energy security.