Serentica Renewables secures $400 million from US investor KKR

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Serentica Renewables, a step-down unit of Vedanta promoter Anil Agarwal’s Volcan Investments, has secured a $400 million investment from US investor KKR. The two companies signed definitive agreements on the investment this week.

Serentica looks to deliver round-the-clock clean energy solutions to energy-intensive industries such as steel, cement, aluminum, and zinc. This includes providing renewable energy solutions through long-term power purchase agreements (PPAs) and working closely with customers to design their paths to net-zero electricity. 

Currently, the company has entered into three long-term PPAs and is in the process of developing 1.5 GW of solar and wind power projects across various states including Karnataka, Rajasthan, and Maharashtra. 

Over the medium term, Serentica aims to install 5 GW of carbon-free energy generation capacity coupled with different storage technologies. Eventually, it aims to supply over 16 billion units of clean energy annually and displace 20 million tonnes of CO2 emissions.

“This investment will allow us to leap ahead in our vision of decarbonizing large energy-intensive industries and help in reversing climate change. This transaction is amongst the largest industrial decarbonization investments in India to date,” said Pratik Agarwal, director of Serentica Renewables.

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. 

Hardik Shah, partner at KKR, said, “Energy-intensive, heavy-industry companies play an important role in society but have traditionally faced more challenges in meeting energy needs sustainably. With Serentica, we look to support these companies in their decarbonization objectives.”

Standard Chartered Bank acted as the sole financial advisor to Serentica for this transaction.

Serentica Renewables is 100% owned by Twinstar Overseas Ltd, a unit of Volcan Investments. Twinstar Overseas also owns controlling stakes in Sterlite Power Transmission and Sterlite Technologies.

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