Global investment firm KKR has participated in the second fundraising exercise in sixth months for India-based Serentica Renewables.
According to media reports, KKR has invested $250 million in Serentica Renewables, picking up an undisclosed amount of stake in the company. KKR had invested $400 million in the company in November of last year.
Proceeds from this investment are expected to be used by Serentica to set up large-scale renewable energy projects for corporate consumers. The company has positioned itself as major supplier of renewable power for large corporates in India.
Serentica is building 400 megawatts of renewable portfolio across multiple states, including Karnataka, Rajasthan, and Maharashtra. Serentica is part of the Vedanta Group, a large minerals and mining company.
The company was launched recently and aims to fulfill rapidly increasing demand for corporate renewable energy needs. Apart from the obvious cost savings to be realized from switching to renewable energy, corporates are also heeding the implicit directions of the government to play their part in helping the country achieve its ambitious target of 500 gigawatts of renewable energy by 2030.
Serentica plans to capitalize on a recently approved incentive to set up large-scale projects and supply renewable energy across the country. India’s central power sector regulator exempted solar and wind energy projects set up for corporates from paying inter-state transmission charges. This crucial exemption could knock off up to Rs 1.50 per kilowatt-hour ($18.3 per megawatt-hour) from the cost of power. This exemption is available for a period of 25 years for all projects commissioned before 30 June 2025.
Apart from group companies like Cairn Energy and Hindustan Zinc, Serentica is also expected to offer renewable power to other corporates.
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