ImpactAlpha, November 15 — KKR, through its $3.9 billion Asia Pacific Infrastructure fund, is investing $400 million in New Delhi-based clean energy producer Serentica Renewables. The deal is the fund’s second hundred-million-dollar transaction in New Delhi over the past three months.
KKR, alongside Hero Group, invested $450 million in Indian clean energy producer Hero Future Energies in September.
Serentica provides low-carbon clean power for energy-intensive, hard-to-abate industrial customers in India. India’s government has set goals to generate half of the country’s power from non-fossil fuel sources by 2030 and reduce carbon emissions by one billion tons.
Serentica signs long-term power purchase agreements to supply customers with clean energy 24/7. The company is developing 1,500 MW of solar and wind power under long-term power purchase agreements in Karnataka, Rajasthan, Maharashtra and other states.
“Energy-intensive, heavy-industry companies play an important role in society but have traditionally faced more challenges in meeting energy needs sustainably,” said KKR’s Hardik Shah.
Serentica is looking to install 5,000 MW of carbon-free generation capacity and storage, removing 22 million metric tons of CO2 emissions from customers’ energy use. “The world is undergoing a clean energy transition and India is at the forefront of this effort with its ambitious target of 450GW by the year 2030,” said Serentica’s Pratik Agarwal.
The Asia Pacific region, home to approximately 60% of the global population, has the world’s fastest-rising regional energy demand, says the United Nations. Investments in clean energy generation in the Asia Pacific are expected to reach $1.3 trillion by 2030.