JSW Neo Energy, a wholly owned subsidiary of independent power producer JSW Energy, will acquire Mytrah Energy’s 12 special purpose vehicles (SPV) within the already agreed consideration.

The cumulative consideration for 12 SPVs stands at ₹18.2 million (~$221,024). However, the transaction value would be part of the earlier deal under which JSW Energy acquired Mytrah Energy’s portfolio of about 1.8 GW renewable energy generation capacity, comprising 17 SPVs and 1 Ancillary SPV.

The company said that the acquisition would bring Mytrah Vayu (Sabarmati) to its portfolio, allowing the firm to have better exclusive holding rights to specific land parcels. This particular SPV owns a 250 MW wind power plant.

“JSW Neo Energy now agreed to acquire the entire shareholding of additional 12 MEIPL SPVs within the already agreed consideration approved by the Board for the Transaction,” JSW Energy said in a filing at BSE.

In May 2022, JSW Group signed an agreement to buy renewable energy producer Mytrah Energy in a deal that was expected to be worth $1.8 billion to $2 billion. Mytrah has over 1.8 GW of operational assets in the renewable energy sector.

The 12 SPVs generate, distribute, transmit, and supply electrical energy through conventional and non-conventional methods, including wind and solar.

These assets are spread across 17 wind farms and 21 solar projects in nine states – Punjab, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu.

In September last year, the Competition Commission of India approved the acquisition of 18 subsidiaries of Mytrah Energy by JSW Neo Energy.

The acquisition will help JSW reduce its carbon footprint by 50% by 2030 and achieve carbon neutrality by 2050.

JSW Energy initiated the process to acquire Mytrah’s 1.7 GW renewable energy assets in the third quarter of the financial year (FY) 2023.

JSW Energy operates 3.8 GW thermal power projects and its operational renewable energy project profile of 1.6 GW includes hydropower (1.3 GW), wind (27 MW), and solar (235 MW).

The company’s revenue for the third quarter of FY 2023 was up 18% year-over-year to ₹23.5 billion (~$290 million) primarily due to higher realization, as higher fuel costs are allowed ‘pass through’ for long-term power purchase agreements.

Last August, JSW Neo Energy agreed to acquire all 18 SPVs from Mytrah Energy for ₹105.31 billion (~$1.33 billion).