Alternative asset manager KKR and South Korean industrial conglomerate SK Group announced the launch of a new renewable energy platform valued at KRW 2 trillion (USD$1.3 billion), creating Korea’s largest renewable energy business, and aimed at addressing Korea’s surging clean-power demand from AI data centers and semiconductor manufacturing.
The companies said that the new platform will consolidate renewable energy assets previously held across SK affiliates, spanning solar, onshore and offshore wind, and fuel cells into a single, integrated platform, tapping into each company’s respective operational experience and renewables investment expertise.
The companies said that the platform currently has 1.7 GW of operating capacity and has a development pipeline that will bring the total capacity to 10GW.
Under the agreement, KKR will have management control of the platform in its initial phase, with SK participating as an equity investor and retaining the flexibility to pursue control rights through future discussions.
According to the companies, by combining renewable businesses and assets from across the SK Group, the new platform will integrate the entire value chain, from development and construction through to operation and maintenance. The platform will manage a portfolio covering all areas of renewable energy generation – except hydrogen – including solar, offshore and onshore wind, and fuel cells.
KKR said it is funding the transaction through its Asia Pacific infrastructure strategy, which has invested more than $31 billion into energy transition and renewables globally since 2011, the company said.
Keith Kim, Partner at KKR, said:
“Korea is one of Asia’s most attractive renewable energy markets, underpinned by strong corporate demand for clean power from the semiconductor, data center, and manufacturing sectors. Together, we are establishing a leading, scaled renewable energy platform that can supply reliable clean power to Korea’s most demanding industrial users.”
