Indian company Serentica Renewables plans to raise between $6 billion and $8 billion over the next five years, to help fund acquisitions and build projects as it looks to more than double its clean energy capacity, a top executive said.
Serentica, backed by private equity giant KKR, is looking to invest $10 billion to $11 billion to expand its clean energy portfolio to 17 gigawatts (GW) by 2029/30, its chairman, Pratik Agarwal, said.
The company is looking to acquire projects that are already operating or are under construction.
It currently has 2 GW of installed solar and wind capacity and 2 GW of capacity due to be commissioned within the next 10 months.
The first phase of the planned investment, about $3 billion, is fully funded and the next phase, $2 billion, is partly funded, with the rest under discussion, Agarwal said.
The acquisitions are “purely opportunistic and value-based,” he said, adding that the company is evaluating projects among the 3 GW to 5 GW of clean energy capacity up for sale in India.
Investment in renewables is booming as India is aiming to double non-fossil-based power capacity to 500 GW by 2030.
Separately, Resonia, which was created with the break-up of Sterlite Power, is planning to invest between $1.5 billion and $2.5 billion annually in India’s fast-growing transmission sector, Agarwal said.
Resonia is backed by Singapore’s sovereign wealth fund, GIC GIC.UL and focuses on setting up power transmission infrastructure.
Resonia aims to secure $2 billion to $3 billion worth of projects annually as India is expected to award nearly $14 billion to $16 billion worth of transmission projects over the next few years.
The country needs to rapidly expand its transmission infrastructure to be able to transmit power from all the new renewable energy projects.
Reuters
