JSW Energy Shifts Towards Renewables as Clean Power Reaches 61% of Portfolio

JSW Energy Shifts Towards Renewables as Clean Power Reaches 61% of Portfolio

July 29, 2026

JSW Energy is accelerating its transition towards a renewables-led power portfolio, with renewable sources now accounting for around 61% of its total installed capacity, according to the company’s Q1 FY27 update. Its total installed capacity stands at approximately 14.6 GW, while thermal capacity of 5.7 GW continues to provide dispatchable baseload power.

The company added 873 MW during Q1 FY27 and another 225 MW in July, taking capacity additions since April to approximately 1.1 GW. JSW Energy remains on track to add 3 GW during FY27, supported by a planned capital expenditure of ₹20,000 crore.

Solar generation increased 29% year-on-year, while wind generation grew 3%, supported by the addition of 1,168 MW of renewable capacity. The company expects its transition from T-GNA to GNA connectivity to help address curtailment-related challenges.

JSW Energy has raised ₹10,150 crore through a combination of promoter funding, partial monetisation of its JSW Steel stake and a qualified institutional placement. The company reported cash and equivalents of around ₹12,880 crore against gross debt of ₹74,000 crore and net debt of approximately ₹55,000 crore.

Its net debt-to-TTM EBITDA ratio improved to 4.95x from 5.2x in FY26, with management maintaining its commitment to keep leverage below 5x through 2030.

JSW Energy is also expanding vertical integration across its energy businesses. The company has commissioned a wind-blade manufacturing facility at Halol, Gujarat, with capacity of approximately 600 MW of installations annually, while another facility in Chitradurga is planned for FY27.

The company’s 5 GWh battery assembly plant has also secured its first external order, valued at around ₹440 crore, highlighting the growing role of energy storage in its expansion strategy.

Energy storage is becoming another major pillar of JSW Energy’s growth strategy. Its pumped-storage pipeline includes the 1,500 MW Bhavali project in Maharashtra and the 1,680 MW Kandhaura project in Uttar Pradesh, with a third project at Narihalla in Karnataka progressing towards a power purchase agreement.

The company expects these pumped-storage assets to generate high-teen internal rates of return, with capital expenditure benchmarked at around ₹5 crore per MW.

Overall, JSW Energy’s latest expansion strategy points to a significant shift in its business mix, with capital allocation, manufacturing investments and its project pipeline increasingly focused on renewables and energy storage, while thermal generation continues to provide grid-firming capacity.