India’s JSW Energy changes course, now aiming for renewable energy-based expansion

first_imgIndia’s JSW Energy changes course, now aiming for renewable energy-based expansion FacebookTwitterLinkedInEmailPrint分享ETEnergyWorld.com:Sajjan Jindal led-JSW Energy, one of the only private power utilities in India which was looking to expand its thermal power capacity through acquisitions has pulled the plug on the plan and aims to focus on renewable energy only, after calling off the deal to buy an asset from GMR.The company has a stated plan of scaling up its capacity to 10 megawatts in the next 3-5 years from 4,559 mw now. While the capacity addition plan does not change, the company will now focus on renewable energy projects to add renewable energy projects.The company aims to be carbon neutral by 2050, said Prashant Jain, joint managing director and chief executive officer, told ET. “We have realised that many of these existing thermal assets have ongoing litigations and the government is increasing taxes on polluting industries, so it will be a continuous struggle for the next 15-20 years for the balance life of the plant. Given all this, renewable is a better option,” he said.Jain said that the company was keen to acquire thermal power assets for the low cost of generation and firm power purchase agreements. Now with the renewable energy tariff declining to levels that are competitive with thermal power units, power distribution companies will not give preference to thermal power going ahead.On Friday, JSW Energy called off its deal to the 1,050 mw-GMR Kamalanga Energy project in Odisha, after five months of announcing the deal, citing uncertainties in the wake of the Covid-19 pandemic and subsequent lockdown. Two years ago, the company had to terminate its proposed acquisition of the 500 mw-Bina Power from Jaiprakash Power Ventures after months of delay in getting necessary approvals from lenders.[Rachita Prasad]More: JSW Energy pulls the plug on thermal asset expansion, focus on green energy nowlast_img