Serentica Renewables to acquire Statkraft’s India solar portfolio

Serentica Renewables, backed by KKR, has signed a binding agreement to acquire the Indian solar business of Norway-based Statkraft. The deal value was not disclosed, but sources estimate the enterprise value at around Rs 2,000 crore.

The acquisition will expand Serentica’s operational capacity to 1.5 GW, supporting its plan to reach 17 GW by 2030. Statkraft’s Indian solar portfolio includes 445 MW of operating projects in Bikaner and 1 GW under development in Rajasthan. These assets, currently supplying power on a merchant basis, will be repurposed to provide commercial and industrial clients with round-the-clock electricity.

Serentica, established in 2022, operates 600 MW and has 4 GW under development. Pratik Agarwal, Chairman, said the acquisition reinforces the company’s commitment to India’s energy transition. He added that integrating these solar projects with wind and storage systems would allow faster delivery of round-the-clock solutions to large clients.

Statkraft, a Norwegian state-owned company, operates hydropower, wind, solar, and gas-fired power projects globally and also supplies district heating. The company is seeking to divest a larger portion of its Indian operations. Multiple bidders, including Blackstone, Serentica Renewables, JSW Group, and Adani Group, have shown interest in acquiring Statkraft’s portfolio of hydro and solar projects, estimated to be valued between Rs 170 billion and Rs 180 billion. In a recent move, Statkraft sold its 49 per cent stake in the hydropower joint venture Malana Power Company to Indian conglomerate LNJ Bhilwara Group. The sale included its interests in the 86 MW Malana and 192 MW Allain Duhangan plants in Himachal Pradesh. 

Statkraft’s Indian operations currently include hydropower plants in Himachal Pradesh and solar projects across Rajasthan and Tamil Nadu. The portfolio also includes a 76 MW solar project in Telangana, a 75 MW project under development in Tamil Nadu, and another hydropower project under construction at Tidong.

The divestment comes as Statkraft faces declining revenue and increasing debt. Last month, Fitch downgraded the company’s credit rating from ‘BBB+’ to ‘BBB’ with a negative outlook, citing weaker performance and higher leverage. Globally, Statkraft has 19.4 GW of installed capacity, of which 12.1 GW is hydropower, with most revenue generated in Europe.