Renewable Energy Sector Sees Strategic Realignment with Statkraft-Serentica Deal

Strategic Divestment and Acquisition in India's Green Energy Market

Statkraft, Europe’s largest producer of renewable energy, has agreed to divest its 1.5 gigawatt-peak (GWp) renewable energy portfolio in India. The assets, comprising both operational and developmental solar and wind projects, are being acquired by Serentica Renewables, an Indian green energy player backed by KKR. This transaction, valued between $220 million and $250 million (₹1,942-2,207 crore), signals a significant strategic reorientation for Statkraft and a substantial expansion for Serentica within the rapidly growing Indian renewable energy landscape.

Transaction Details and Asset Overview

The portfolio being acquired by Serentica Renewables includes approximately 1.5 GWp of assets located primarily in the state of Rajasthan. This encompasses the recently commissioned 445 MWp Khidrat solar plant and a pipeline of solar and wind projects totaling around 1 GWp, which are currently in various stages of development. The deal, which has been in the works since March, saw Serentica outbidding Blackstone. EY advised Statkraft on the transaction, while Standard Chartered advised Serentica. The agreement is subject to customary conditions precedent and regulatory approvals.

Analysis of Corporate Strategy and Market Dynamics

This divestment aligns with Statkraft's sharpened global strategy, announced after Birgitte Ringstad Vartdal assumed the CEO role. The Norwegian energy giant is focusing its investments on core markets in Europe and South America, prioritizing its flexible hydropower fleet, market operations, and solar, wind, and battery activities within these regions. This move aims to build scale, strengthen competitiveness, and enhance value creation by reducing complexity and operating expenses.

For Serentica Renewables, the acquisition represents a significant leap towards its ambitious goal of developing 17 GW of renewable capacity by 2030. The integration of Statkraft's high-quality assets enhances Serentica's operational capacity, enabling it to better serve its commercial and industrial (C&I) customers with round-the-clock green power solutions. The portfolio's strategic location in resource-rich states and its current merchant power supply capabilities are expected to transition to serve Serentica's C&I clients, offsetting an estimated 0.6 million tonnes of CO2 annually.

Broader Market Context and Implications

The transaction underscores the strong investor interest and ongoing consolidation within India's renewable energy sector. The market is experiencing accelerated clean energy adoption, driven by declining costs, corporate decarbonization targets, and robust government support. Global renewable energy M&A maintained strong momentum in Q1 2025, with deal values totaling approximately $32 billion, reflecting continued investor confidence. India, along with Brazil, contributed significantly to this activity in the Asia-Pacific and Latin American regions, accounting for $8 billion in combined deal value, with corporate acquisitions dominating the Indian landscape. This reflects a shift towards targeted, high-certainty assets with long-term power purchase agreements (PPAs), storage potential, and hybrid configurations.

Expert Commentary

Pratik Agarwal, Chairman of Serentica Renewables, emphasized the acquisition's role in advancing India's energy transition goals:

"Serentica Renewables is committed to the energy transition goals of India, and this acquisition is one more step in furthering that vision. By integrating this asset with wind and storage systems we will be able to provide a faster round-the-clock solution to our largest clients."

Fernando de Lapuerta, Executive Vice President International at Statkraft, expressed confidence in Serentica's capabilities:

"We are very pleased with this transaction. Serentica Renewables is a fast-growing renewable energy company with high ambitions. We are confident that they will continue to operate and develop these assets with competence and commitment, contributing to India's green energy transition."

Looking Ahead

The successful integration of Statkraft's Indian assets is expected to accelerate Serentica Renewables' growth trajectory and strengthen its position as a leading decarbonization platform for C&I and utility customers in India. The company, backed by KKR's $650 million investment, aims to supply over 50 billion units of clean energy annually, displacing 47 million tons of CO₂ emissions. For Statkraft, this strategic divestment allows for a concentrated focus on its European and South American operations, where it plans to invest NOK 16–20 billion annually in areas such as hydropower capacity upgrades, maintenance of its operational asset fleet, and onshore wind power developments. The deal highlights the dynamic nature of the global renewable energy market, characterized by strategic portfolio adjustments and sustained investment in high-growth regions.