Serentica Renewables’ plans for expansion and diversification

Serentica Renewables, a subsidiary of Vedanta Group, is planning to expand its capacity, aiming to add nearly 2 GW in FY25 with a capital expenditure target of Rs 150 billion. The company currently has 4 GW under construction and plans to sign power purchase agreements (PPAs) for an additional 4 GW within the next two quarters. Serentica is also seeking partnerships for an energy storage project and has intentions to enter the green hydrogen sector in the future. The company plans to finance its Rs 250 billion Capex for the 4 GW capacity under execution with Rs 50 billion from a private equity investor and Rs 180-200 billion through bank debt. 

Serentica aims for a capacity of 17-20 GW by 2030. Currently, it operates 500 MW, with 3.5 GW under construction, and expects 1.7-1.8 GW operational by FY25. The C&I segment offers a potential of 150-200 GW.

The company received Rs 50 billion from KKR and plans to finance its Rs 250 billion Capex with a mix of equity and Rs 180-200 billion in bank debt. All 4 GW under construction are tied to PPAs/PDAs, with another 4 GW expected in the next two quarters. About 25 per cent involve government entities like SECI and NTPC.