Funding from PFC will go towards the development of Serentica’s upcoming 400 MW hybrid renewable energy projects in Karnataka
Funding from PFC will go towards the development of Serentica’s upcoming 400 MW hybrid renewable energy projects in Karnataka
Serentica Renewables (“Serentica” or the “Company”), a leading C&I focused renewable energy developer in India, announced that it has achieved financial closure for its upcoming hybrid renewable energy projects in Karnataka. The company has secured the entire debt funding of INR 2600 crores from one of India’s largest power sector lenders, Power Finance Corporation Limited (PFC Ltd.).
To ensure the round-the-clock green energy needs of its customers, cumulatively, Serentica will install 4 GW of renewable energy capacities across the country. In the state of Karnataka, the company is setting up 400 MW of wind and solar capacities where it has already secured connectivity to the inter-state transmission system (ISTS).
Commenting on the financial milestone, Mr. Pratik Agarwal, Director, Serentica Renewables said, "The debt funding from PFC will accelerate our journey towards supplying 40 billion units of clean energy annually to energy intensive industries and displacing 37 million tonnes of carbon emissions.”
Commenting on the financial transaction, Smt. Parminder Chopra, Chairman & Managing Director, PFC said, “This transaction is in line with PFC’s expanding role in funding green projects and position itself as the focal agency for energy transition.”
To recall, in July Renew Power, India's largest renewable energy company by operational capacity, secured funding of ₹64000 Crore ($7.8 billion) from PFC and REC to develop renewable energy projects in the country. In the same month, REC Limited (REC), of which PFC is holding company, commited Rs 3,000 crore in GreenCell Mobility, a pan-India shared electric mobility player, for sustainable transportation in the country.
With a vision to accelerate the clean energy transition of hard-to-abate industries, the overall portfolio will supply more than 9 BUs of clean energy annually, thereby offsetting 8.5 million tonnes of CO2. Serentica’s vision is to supply over 40 billion units of clean energy annually in the medium term and displace 37 million tonnes of CO2 emissions.
To fuel its growth commitments, Serentica signed definitive agreements with leading global investor KKR in November 2022. KKR’s total $650 million commitment to the company, which includes the latest $250 million investment deal, represents one of the largest decarbonization investments in India to date. With the closure of debt funding from PFC, the company has been able to forge relationships with India’s largest power sector financing institutions. This is a testimony of the trust reposed on the company by the banking and investor community.
Established in 2022, Serentica Renewables (India) is a decarbonization platform that looks to provide round-the-clock clean energy solutions enabling the transition of large-scale, energy-intensive industries to clean energy. The company is focused on industrial decarbonization, by making renewables the primary source of energy for the commercial and industrial segment which consumes more than 50% of the electricity generated in India. Serentica aims to provide assured renewable energy through a combination of solar, wind, energy storage and balancing solutions. Serentica’s medium term goal is to supply over 40 billion units of clean energy annually and displace 37 million tonnes of CO2 emissions. The company has already secured investments worth $650 million from leading global investor KKR.
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