KKR, a leading global investment firm, and Serentica Renewables, a decarbonization platform that seeks to enable the energy transition by providing clean energy solutions, on Tuesday announced the signing of definitive agreements between the companies, under which KKR will enter into Serentica Renewables. Will invest $400 million.
“This transaction is one of the largest industrial decarbonization investments ever made in India and advances the global decarbonization agenda that is center stage at COP 27 (the 2022 United Nations Climate Change Conference),” said Pratik Agarwal, Director, . Serentica Renewables,
Serentica seeks to provide clean energy solutions for large-scale, energy-intensive industrial customers. This includes providing renewable energy solutions through long-term power purchase agreements and working closely with customers to work their way to net-zero electricity.
Presently, the company has entered into three long-term PPAs and is in the process of developing about 1,500 MW of solar and wind power projects in various states including Karnataka, Rajasthan and Maharashtra.
Serentica’s medium-term goal is to install 5,000 MW of carbon-free generation capacity with various storage technologies and to supply more than 16 billion units of clean energy annually and displace 20 million tons of CO2 emissions.
Founded in 2022, TwinStar Overseas Limited holds 100 percent stake in Serentica Renewables, which also owns Sterlite Power Transmission and controlling stake in Sterlite Technologies. The company is focused on industrial decarbonization by making renewable energy the primary source of energy for the commercial and industrial segment, which consumes over 50% of the electricity generated in India.
KKR Partner Hardik Shah said, “Our investment in Serentica reflects KKR’s belief in India’s renewables sector and our commitment to drive the energy transition in India.” Standard Chartered Bank acted as Serentica’s sole financial advisor for this transaction.
KKR said it has made its investments from its Asia Pacific infrastructure strategy. The transaction in Serentica marks KKR’s latest investment in India and the renewables sector. Since 2011, KKR has deployed over $15 billion in equities globally to invest in renewable assets, such as solar and wind, that have 23 GW of operational power generation capacity as of December 31, 2021.
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