KKR backed independent power producer (IPP) Serentica Renewables plans to double its capacity by FY27 and is looking to produce 50 billion units of clean energy annually by FY30. Pratik Agarwal, chairman, Serentica Renewables & Resonia and MD, Sterlite Electric, tells Raghavendra Kamath about the company’s future plans and issues plaguing the renewable power.
How much capacity expansion have you completed in FY26, and what is the plan for FY27? How much do you plan to invest?
By March 2026, we will reach a capacity of 2,500 MW, with plans to double this to 5,000 MW by FY27. In terms of capital commitment, we expect invest nearly $3.5 billion by March 2027. Moving forward, our strategy involves an annual investment of $1.5-2 billion.
Serentica planned to raise between $6-8 billion over the next five years. How much of this has been tied up?
We are well on track with our financial roadmap. We expect to have tied up debt and equity commitments totaling nearly $5 billion by March 2027.
What are your plans for cells, panels, wafers, and ingots?
We don’t have any backward integration or manufacturing plans for now, but we keep evaluating if any attractive opportunities come through.
Our current portfolio requires a combination of modules that are compliant with both the approved list of models and manufacturers (ALMM) and the approved list of case models (ALCM) through June 2028. At this stage, we do not have requirements for wafers and ingots, as we focus on the procurement of cells and modules.
You were looking to get an investor on board by the end of this year. Is there any progress on that?
Given that our capital requirements are significant, we are continuously evaluating both private and public sources of capital to meet our ongoing fundraising needs and support our long-term growth.
You were evaluating a manufacturing facility in overseas markets. Is there any update?
While we have evaluated a number of opportunities in the past, including manufacturing, these initiatives remain opportunistic in nature. We remain open to such prospects should they align with our strategic and value-based goals.
Power demand growth in FY26 moderated from previous years. Do you see any concern, and what is your outlook for FY27?
We expect power demand to continue growing at current steady levels. As key initiatives like ‘Make in India’ gain further momentum and CBAM (carbon border adjustment mechanism) obligations begin to take effect, we anticipate a significant surge in industrial demand over the next 24 months.
Solar cell prices shot up recently, leading to increased project costs. How has this impacted your operations?
The recent spike in solar cell prices was primarily driven by an appreciation in silver prices. However, since silver prices have subsequently dropped by 40–45%, we have seen cell prices abate to more accurately reflect current input costs, easing the pressure on project economics.
Battery energy storage system (BESS) sector is facing a 25–30% cost increase. What are your views?
BESS costs saw a slight increase due to a rise in lithium carbonate prices. However, much like silver and other transition metals, these prices have since corrected. This correction is now being reflected in the repricing of the value chain, stabilising the outlook for the sector.