Partnering for a Greener Tomorrow

1. Could you elaborate on the synergistic relationship between KKR and Sterlite Power, particularly in the context of advancing India's renewable energy landscape?

KKR’s relationship with Sterlite Power has always been special – the first investment we made from our Asia infrastructure strategy years ago was with Sterlite, and we have not looked back since.

Fast forward to today, India is the world’s fastest growing major economy and shows no signs of slowing down soon. As it continues to develop rapidly, its drivers of prosperity will need significant amounts of energy, including in the industrial sectors that play an important role in the everyday lives of people in India. That is what makes the work KKR does together with Sterlite so meaningful. Through our collaborations in the renewable energy sector, including IndiGrid and Serentica Renewables, KKR is able to support the great expertise Sterlite has with our capital, global network, experience, and knowledge from around the world, which ultimately helps to scale the delivery of renewable energy solutions for the decarbonisation efforts of companies in India.

As like-minded strategic partners, we believe in supporting sustainable development and the global clean energy transition that India is at the forefront of today. Globally and since 2010, KKR has committed more than US$40 billion to sustainability-focused investments, including over US$30 billion to climate and environmental sustainability investments. This includes our investment in Serentica Renewables, which is doing important work to help companies in the hard-to-abate industries advance in their decarbonisation objectives and contributing meaningfully to India’s energy transition ambitions. We look forward to extending our already-strong relationship over the years.

2. What are KKR's thoughts on the current state of the clean Indian energy market?

We see tremendous promise in India. Asia is a core focus for KKR’s global infrastructure strategy, and within the region India is a key market for us, given its dynamism, scale of investment opportunities, and sizable need for capital solutions. India has also benefitted from active, strong leadership and clear targets set out by the government. In 2022, the International Energy Agency described India as “pioneering a new model of economic development that could avoid the carbon-intensive approaches” undertaken by many before them and create a blueprint for developing economies.

KKR’s sustainable infrastructure investments, including those alongside Sterlite, reflect not only KKR’s desire to accelerate the energy transition in India through providing capital solutions, but also our confidence in India’s great potential and ability to achieve its decarbonisation ambitions.

3. How important is collaboration between the private and public sectors in driving the clean energy transition? How poised is KKR to play a vital role in accelerating this transition?

KKR continues to see enormous infrastructure investment opportunity in India, and is highly active across renewables, transmissions, and roads and highways. India is today one of the world’s largest and thriving economies, supported by strong leadership and a favourable regulatory environment. These make for an attractive investment destination for global, long-term private investors like KKR.

India has had a long track record of successful public-private partnerships, and it is crucial that the private and public sectors continue collaborating to drive the clean energy transition. Such efforts encourage parties to bring value-add beyond capital, such as operational expertise and global experience, and ultimately bode well for accelerated innovation and even greater investment. To that end, we continue to equip our local team with best-in-class knowledge to strengthen our investment and value creation capabilities.

While we have seen increased public spending on critical infrastructure and clean energy, the speed at which India has grown continues to outpace the amount of available capital, which creates a funding gap that KKR is well-placed – and committed – to fill.