JSW Energy Capacity Expansion: Aiming for 30 GW to Become Top Private Power Producer

Published on April 20, 2025

The JSW Energy capacity expansion plan is taking shape with the company aiming to position itself among the top two-three private sector power producers in India. The ambitious strategy involves expanding its installed capacity to approximately 30 GW through organic growth, while remaining open to quality acquisitions that meet its benchmark returns. This strategic move will significantly enhance the company’s market position and contribution to India’s growing energy needs.

Current Position and Near-Term Capacity Addition

Currently ranked as India’s fourth largest private sector power producer, JSW Energy is rapidly executing its capacity expansion plans. According to Sharad Mahendra, Joint Managing Director & CEO, the company presently operates with a 12.2 GW capacity and is on track to commission several projects in the immediate future.

“We are currently at 12.2 GW of operational capacity. We are commissioning our greenfield hydro plant of 240 MW in this quarter. More of our greenfield projects will get commissioned now. So, in FY26 we will be adding more than 3.6 GW, which we added in FY25 through organic and inorganic routes,” Mahendra told businessline.

This accelerated capacity expansion trajectory demonstrates JSW Energy’s commitment to rapid growth and positions the company to capture increasing market share in India’s evolving energy landscape.

JSW Energy Capacity Expansion to 30 GW

The cornerstone of JSW Energy’s capacity expansion strategy is its plan to reach approximately 30 GW through organic development routes. This ambitious target represents a significant scaling of operations from its current base of 12.2 GW.

This targeted composition highlights JSW Energy’s strategic pivot toward renewable sources while maintaining a balanced portfolio that can ensure reliability and meet baseload requirements. The capacity expansion approach aligns with global energy transition trends while acknowledging India’s continued need for conventional power generation.

West Bengal Thermal Power Project

A flagship component of the JSW Energy capacity expansion plan is the establishment of a major thermal power plant in West Bengal’s Salboni. This project represents the company’s largest greenfield initiative to date in terms of both capacity and investment.

“This is the largest greenfield project that JSW Energy is doing in terms of capacity and investment. We are putting up 2X800 ultra-supercritical units. The first unit will be commissioned within 48 months as per the PPA,” Mahendra explained.

The Salboni plant was initially announced by Sajjan Jindal, Chairman of JSW Group, during the Bengal Global Business Summit in February 2025. The project demonstrates JSW Energy’s commitment to strategic capacity expansion while supporting West Bengal’s power requirements through a long-term partnership with the state distribution company.

Vision 3.0: Revised Targets and Investments

The JSW Energy capacity expansion roadmap is currently undergoing a significant revision as the company develops its new Vision 3.0 strategic plan. This update will supersede the previous target of reaching 20 GW installed capacity by FY30.

“We will revise the capacity target upward in our Vision 3.0 for FY30, and accordingly revised investment numbers will be announced. The investment will be higher. Out of that around ₹16,000-18,000 crore has already been invested,” Mahendra said.

The new strategic vision is expected to be unveiled within the next two-three months, providing a comprehensive roadmap for JSW Energy’s capacity expansion plans through the end of the decade. This forthcoming announcement is likely to include significantly higher capacity targets and corresponding investment requirements.

Strategic Manufacturing Initiatives

To support its ambitious capacity expansion and enhance vertical integration, JSW Energy is venturing into manufacturing key components for renewable energy projects. This strategic move will reduce reliance on external suppliers and create cost advantages.

“We have got the technology from one of the leading suppliers and manufacturers of wind blades. We already signed the technology license agreement. Production is going to start very soon. It has a very big cost advantage,” Mahendra noted.

This manufacturing initiative represents a strategic enhancement to the company’s capacity expansion capabilities, allowing JSW Energy to better control quality, reduce costs, and accelerate the deployment of wind energy projects as part of its renewable energy portfolio growth.

Financing the Expansion

The ambitious JSW Energy capacity expansion program requires substantial financial resources. The company has already taken significant steps to ensure adequate funding is available to support its growth plans.

In April 2024, JSW Energy successfully raised ₹5,000 crore through a Qualified Institutions Placement (QIP). This capital raise strengthens the company’s financial position and provides immediate resources for executing its expansion strategy.

As the company finalizes its Vision 3.0 plan, additional details regarding the total investment requirements and financing strategies are expected to be announced. The upward revision of capacity targets will necessitate corresponding adjustments to funding plans.

With its strong balance sheet, established market presence, and demonstrated ability to access capital markets, JSW Energy appears well-positioned to finance its ambitious growth trajectory and achieve its goal of becoming one of India’s top private sector power producers through strategic capacity expansion.

Published on April 20, 2025 | Updated on April 20, 2025