Serentica inks 2.5 GW renewables supply deal
This move follows the firm’s announcement of a definitive agreement with KKR to secure a $250-million funding.
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Serentica Renewables India Pvt. Ltd, backed by KKR, has signed deals to supply 2.5 gigawatt (GW) of renewable energy to commercial and industrial consumers, said director Pratik Agarwal.
This move follows the firm’s announcement of a definitive agreement with KKR to secure a $250-million funding.
With this, Serentica is set to achieve an installed capacity of 4 GW. All projects under both the phases would cost around $3 billion, Agarwal said. In the first phase the firm is installing 1.5 GW renewable energy projects to cater to C&I customers. “We have closed contracting for entire phase I of the capex programme of ₹10,000 crore, and are now looking to complete phase-I within the stipulated time mentioned in the contract," he added.
The projects under both the phases will be commissioned within 12-24 months. “Phase I required us to have 1.5 GW of capacity, and in phase two an additional 2.5 GW, taking our installed capacity to 4 GW."
Serentica‘s capacity installation for new the power supply agreements in phase-II will be funded by the capital raised from the second round of the investment by KKR. The first round of agreement was for an annual supply of 3 billion units and the second round involved a supply of 6 billion units. Serentica, a Vedanta Group firm, has signed deals with various group entities for both phases, he said. The company’s largest power distribution agreement is with Hindustan Zinc. It has also inked pacts with group subsidiaries Cairn Energy and Sterlite Copper.
Noting that the capacity installation for the recently signed agreements for power supply under the second phase would be funded by the capital raised from the second round of KKR investment, the Serentica director said that the first round of agreements was for 3 billion units of annual supply and the second round was for 6 billion units of annual supply.
He noted that in both the phases, the Serentica, a Vedanta Group company has signed agreements with different group entities and the largest power distribution agreement is with Hindustan Zinc. The company also has agreements with Vedanta Group’s Cairn Energy and Sterlite Copper.
Agarwal said that the company is talks in several companies including multinationals for renewable energy pacts.
“We are definitely in talks with various companies, including large global multinationals who want to produce renewable energy and sell RE in India, as well as a large Indian conglomerates who have large export obligations. We are in touch with many of them but it’s a slow process. We hope that in the current financial year we would be able to announce few more contracts," he said.
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