Becoming carbon neutral by 2050

This section looks at how we have organised ourselves and our business strategies to achieve our organisational aspirations.

We have focussed our growth strategies towards transforming our generation portfolio to become around 70% renewable-driven by FY25 by embracing new-age green energy as our foundation for dynamic growth.

Overview of the Operating Context

An overview of how was the overall environment, given the challenges of the year.

Our Business Model

JSW Energy Limited, the energy vertical of the USD 22 billion JSW Group, operates in the entire energy value chain including generation, transmission, mining and power trading, along with its subsidiaries. By supplying reliable, affordable and quality power, it remains at the forefront of new market trends and continues to satiate changing customer needs.

We remain committed to own and operate a diversified portfolio of assets in thermal, hydro and renewable segments, delivering maximum operational efficiency. Through the adoption of global best practices, we are always working to reduce the impact our operations have on the environment. Through our future strategy of advancing in the renewable energy segment, our objective is to ensure sustainable value creation for all our stakeholders. Believing in sustainable value creation, we remain fully committed to the environment and the society, and strive to reduce our carbon footprint.

Our single-minded aim is to build our organisational capabilities in the renewable energy space and commissioning new renewable capacities. We are already treading on this path by having initiated the process of acquiring topographically productive land banks in resource rich areas. A strong balance sheet and healthy cash flows makes us well-positioned to pursue attractive growth opportunities. This also provides us with enough headroom to pursue our growth plans in the renewable energy segment. In addition, we are also evaluating inorganic growth opportunities to create significant value for our stakeholders.

Targeting the immense potential in Renewable Energy

At JSW Energy, our key strategy of moving forward in the renewable energy space adheres well with the changing dynamics of the Indian power sector and the changing economic landscape in India. With capacity addition in the power sector being primarily driven by renewable energy, we project an immense and untapped potential in the renewable energy segment to grow our business and create stakeholder value creation.

Ensuring a carbon-free future, growing as a 20 GW company

Well-supported by an existing portfolio of efficient thermal and hydro assets, our strategy is to capitalise on the golden-era of renewable power generation and contribute in playing a significant role in ensuring a carbon-free future in India. By FY30, we plan to emerge as a 20 GW company, with all our incremental capacity coming from renewable sources. By striking a perfect balance between our growth aspirations and prudent risk management, we have onboarded new opportunities in the business, which has mainly led us towards emerging as India’s leading power producer.

Our growth strategies

Investing in assets with a capability to generate low-cost power to reduce offtake and receivable risks; Engaging into long-term PPAs ensuring visibility to stable long-term cash flows and stable revenues.

Blending excellent project execution and operational expertise to generate healthy free cash flows.

Utilising free cash flows to invest in returns accretive capex which then drives de-leveraging of the balance sheet, and in the process, generating headroom to pursue value-accretive growth.

Enabling prudent capital allocation with stringent due diligence practices; business case is stress-tested effectively to ensure economic viability of proposed projects.

Our process for creating value

Value Creation Model