Private equity giant KKR is set to invest $400 million in Serentica Renewables, a Gurugram-headquartered decarbonisation platform that provides clean energy solutions for energy-intensive industries, per an announcement.
Serentica, which is held by Twinstar Overseas Limited, focuses on industrial decarbonisation and makes renewables the primary source of energy for the commercial and industrial segment, which consumes more than 50% of the electricity generated in India.
Serentica provides renewable energy through a combination of solar, wind, energy storage, and balancing solutions.
The company is working on a target to install 5,000 MW of solar and wind power projects across various states, including Karnataka, Rajasthan, and Maharashtra.
“We are happy to have a like-minded strategic partner in KKR who believes in our model of sustainable development,” said Pratik Agarwal, Director of Serentica Renewables in a statement. “This investment will allow us to leap ahead in our vision of decarbonising large energy intensive industries and help in reversing climate change,” he added.
The world is undergoing a clean energy transition, and India is at the forefront of this effort with its ambitious target of 450 GW by the year 2030.
Hardik Shah, partner at KKR, added: “Energy-intensive, heavy-industry companies play an important role in society but have traditionally faced more challenges in meeting energy needs sustainably.”
KKR makes its investment 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 equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23 GW, as of December 31, 2021. In Asia-Pacific, KKR sees renewables as core to its infrastructure strategy and seeks to invest behind the significant opportunities across the region.