KKR ties up with Sterlite Power to create new clean energy platform Serentica Renewables - Economic Times

Private equity group KKR is joining forces with Vedanta Group’s newly formed arm Serentica Renewables to create a new energy platform that aims to help large industrial clients decarbonise. KKR is expected to invest $400 million in the platform while Sterlite Group companies will expected to invest $100 million as well, said sources in the know.

A formal announcement is expected later on Tuesday.

Serentica Renewables is 100% held by Twinstar Overseas Limited (TSOL) which also owns controlling stakes in Sterlite Power Transmission Limited and Sterlite Technologies Limited. Both are in turn held by Agarwal family Volcan Investments, the ultimate family investment vehicle of billionaire Anil Agarwal’s family.

Serentica will be looking to deliver round-the-clock clean for large-scale, energy-intensive industrial customers like steel, auto, manufacturing. In India this segment consumes 70 GW of energy, predominantly coal and gas. Globally this commercial and industrial (C&I) segment is responsible for emitting green gas emissions. This will include providing renewable energy solutions through long-term Power Purchase Agreements (PPAs) and with customers to help them achieve their net zero targets.

KKR and Sterlite Power spokespersons were not immediately available for comment.

Currently, the company has entered into three long-term PPAs for various Vedanta group entities and is in the process of developing around 1,500 MW of solar and wind power projects across three states of Karnataka, Rajasthan, and Maharashtra. Sources said, the plan is to scale it up to 5,000 MW of clean generation capacity along with different storage technologies and supply over 16 billion units of clean energy annually and displace 20 million tonnes of CO2 emissions.

Standard Chartered Bank is the advisor.

This will be the second time that Pratik Agarwal led Sterlite Power Transmission is teaming up with KKR. Originally the PE group had invested in IndiGrid Investment Managers Ltd – an InvIT launched by Sterlite.

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.

Adblock test (Why?)

KKR ties up with Sterlite Power to create new clean energy platform Serentica Renewables - Economic Times
Read More