JSW Energy Revises 2030 Ambition, Eyes 30 GW of Generation Capacity

JSW Energy, the power arm of JSW Group, will ramp up capacity growth and sharpen its focus on renewables. The company is targeting a 30 GW generation capacity by FY30 or even sooner, a significant upgrade from its earlier target of 20 GW by the same time. This new aspiration comes on the heels of a year with high capacity addition, where 3.6 GW was added in FY25 and total installed capacity stands at 12.2 GW.

At the end of FY25, JSW Energy's operating capacity was 10.8 Gw. Currently, its capacity has increased to 12.2 GW. JSW Energy also has an 18 GW pipeline of projects at different stages of development, majority being in the renewable energy space, that would be implemented by 2030. Of this pipeline, only 3.2 GW is thermal, while the rest is constituted by renewable projects. This strategic shift suggests a significant pivot towards green energy, with the company anticipating that renewable sources could constitute two-thirds of its portfolio by FY'26.

This accelerated growth trajectory necessitates a revised investment strategy, which will be detailed in the upcoming Vision 3.0, slated for unveiling within the next two to three months. This Vision 3.0 will lay out a higher capacity goal and a higher capital investment than the ₹1.15 trillion declared under Vision 2.0 in May 2023. Around ₹16,000-₹17,000 crore has already been spent from the Vision 2.0 allocation towards organic growth since 2023, with another ₹29,000 crore set aside for acquisitions, such as KSK Mahanadi and O2 Power's renewable energy business. The new capital spending under Strategy 3.0 is likely to be over ₹1.15 trillion.

One of the main drivers of JSW Energy's expansion is the ₹16,000 crore greenfield Salboni thermal power project in West Bengal with two units of 800 MW capacity each. West Bengal Chief Minister Mamata Banerjee will lay the foundation stone of the project on Monday. The first unit will be functional within 42 months, and the second unit within 48 months. This investment is said to be among the biggest in the private sector in the state and represents JSW Energy's major entry into the eastern belt.

Aside from traditional power generation, JSW Energy is currently pursuing opportunities in green hydrogen and nuclear power. JSW Energy is commissioning a 3,800 tonnes per annum green hydrogen project at Vijaynagar this quarter for its mainstay green steel production for JSW Steel. While showing interest in nuclear power, JSW Energy is aware of the requirement of a favorable policy environment from the government.

JSW Energy is also strategically working on power storage systems, such as a 12 GWh pumped hydro storage and 1.8 GWh of battery energy storage systems under construction. In addition, the company is also contemplating battery manufacturing for the electric vehicle (EV) segment, in line with the JSW Group's entry into the automobile sector through its investment in MG Motor India.

Although the firm is presently oriented towards B2B (business-to-business) power generation with no near-future plans for B2C (business-to-consumer) operations like power distribution or EV charging stations, it recognizes the future potential of the distribution sector.

JSW Energy's management focuses on a growth strategy of aggressive growth with financial discipline and judicious capital allocation underpinned by robust balance sheet and manageable debt. Although FY'26 or FY'27 topline guidance was not given, the company expects strong year-on-year improvement in EBITDA over the next five years, with management keeping an eye on EBITDA and margins instead of topline variation based on fuel prices in thermal power generation.

In sum, JSW Energy is showing a clear intent to pick up the pace of growth in the power business, with significant focus on renewable energy and strategic investment in important projects and emerging technologies such as green hydrogen and battery storage. The forthcoming Strategy 3.0 is eagerly awaited to shed more light on the company's aggressive goals and investment plans, marking a dynamic phase for this energy giant.

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