The board of JSW Energy has approved the reorganization of green (renewable) and grey (thermal) businesses, the company said on Thursday.
As a result of this re-organization, all the existing and upcoming renewable energy businesses will be housed under 'JSW Energy Neo Limited', a wholly-owned subsidiary of the company, JSW Energy said in a statement.
This is in line with the announcement made by the company on July 30, 2021 stating that the board had approved the evaluation of re-organization of Green and Grey businesses, it stated.
This move will help the company in building and streamlining its renewable portfolio and setting up a holding structure that is efficient for fund-raising and unlocking value for shareholders, it stated.
In May 2021, JSW Hydro Energy had issued green bonds of $707 million, which was the largest hydro green bond issuance in Asia.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said, ''JSW Energy has laid out a growth plan to reach 20 GW of power generation capacity by 2030, with about 85 per cent of this capacity via renewable energy."
''With our healthy balance sheet and proven project execution expertise, we are one of the best-positioned companies in the sector to undertake robust growth plans in the renewable energy space. Given our plans, we are strategically re-organizing our Company to more effectively support our growth strategy and to help unlock value for shareholders.''
At present, JSW Energy has 4,559 MW of installed capacity across thermal (3,158 MW), and hydro & solar (1,401 MW). The company has laid out a growth plan to reach 20 GW capacity by 2030, with the share of renewable energy in the portfolio increasing to 85 percent, up from 30 per cent currently.
Currently, around 2,458 MW of renewable projects are under-construction, 2,218 MW of wind and solar projects, for which PPA (power purchase agreement) have already been signed, are expected to be commissioned in the next 18-24 months, while the 240 MW Kutehr hydro project is expected to be commissioned in the next 36-40 months.
At the COP26 summit, India announced its target to reach net-zero by 2070, and a target of achieving 500 GW of non-fossil fuel energy capacity by 2030.
In August 2021, the total installed renewable energy capacity in India (excluding large hydro) crossed the milestone of 100 GW. With this achievement, India stands at 4th position in the world in terms of installed renewable energy capacity, 5th in solar, and 4th in wind.
JSW Energy has set an ambitious target for a 50 per cent reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy.
(With inputs from PTI)