Global alternative asset and private equity investor KKR announced today an agreement to invest $400 million in India’s Serentica Renewables, a decarbonization platform focused on providing clean energy solutions for energy-intensive, hard-to-abate industries.

Established this year, Serentica is focused on industrial decarbonization in India, by providing round-the-clock clean energy solutions to help transition large-scale, energy-intensive industries to clean energy. Activities include providing renewable energy solutions through long-term power purchase agreements (PPAs), and working with customers to design pathways to net-zero electricity.

Serentica has set goals to install 5,000 MW of carbon-free generation capacity coupled with storage technologies, and to displace 20 million tonnes of CO2 emissions.

Pratik Agarwal, Director of Serentica Renewables, said:

“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 and carries forward the global decarbonization agenda which is centre stage at COP27.”

The announcement comes as India prepares to invest significantly in the transition to clean energy. Earlier this year, the Government of India approved a series of 2030 climate commitments, including a pledge to reduce emissions intensity by 45% and to transition to approximately 50% electric power from non-fossil-based sources. India’s parliament also recently passed a bill enabling a series of moves by the government to regulate and mandate the transition from fossil-based energy to clean and renewable sources in industry, transportation and buildings.

The agreement also marks the latest in a series of energy transition-focused moves for KKR, including the 2020 launch of Virescent Infrastructure, a platform aiming to acquire, own and operate renewable assets in India. KKR also recently launched Aster Renewable Energy, an Asia-focused renewable energy investment platform and Stellar Renewable Power, a platform aimed at originating long-duration high-yielding solar energy investments. KKR has deployed over $15 billion in equity globally to invest in renewable assets since 2011.

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.”