Serentica Secures INR 2600 Cr Funding from PFC for Green Projects

Vedanta backed Serentica Renewables, a C&I focused renewable energy developer, has announced that it has achieved financial closure for its upcoming hybrid renewable energy projects in Karnataka. The firm 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 firm 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 achievement, 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, 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.”

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. 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.

In July, Serentica Renewables announced signing a first-of-its-kind standalone energy storage capacity offtake contract with global energy storage developer, Greenko Group. As part of this contract, Serentica will leverage Greenko’s unique energy storage capabilities to utilise a cumulative 1,500 MWhr capacity from its upcoming energy storage projects in Andhra Pradesh and Madhya Pradesh.

Most of Serentica’s PPA’s so far have involved group firms of the metals and mining Vedanta group.