Serentica plans ₹1 trn investment to boost capacity to 17 GW by 2030: CEO

Akshay Hiranandani talks about about Serentica's future roadmap, and the current market scenario

Vedanta and KKR-backed Serentica Renewables is planning an ambitious capacity expansion by 2030. Chief executive officer (CEO) Akshay Hiranandani talks to Shine Jacob in Chennai about Serentica’s future roadmap, and the current market scenario. Edited excerpts:

 

We understand that you are working on projects of around 4 gigawatts (GW) in the renewables sector. What is the status?

 

Currently, we’re building about 4,000 megawatts (MW) of wind and solar projects across Rajasthan, Maharashtra, and Karnataka. We have a solid pipeline, including 3–4 GW more from both government contracts and new power purchase agreements (PPAs). As these PPAs move into execution, we will keep the pipeline running at the same pace. This is not a single project; it comprises multiple PPAs that we have signed. To summarise, 1.4 GW capacity is already on the ground with around 750 MW operational and earning revenue. The remaining 500 MW is in the approval stage, and others in various stages of construction. Additionally, we are considering Gujarat and Andhra Pradesh, as the resource potential and infrastructure developments in these states make them key targets for future expansion.

 

What are your expansion plans for 2030, and how much investment will go into it?

 

The 4,000 MW we’re currently building will require a capital investment of around ₹25,000 crore. About a year and a half ago, we raised ₹5,000 crore in equity from KKR, one of our largest infrastructure investors. We also have a mix of domestic and international lenders, including European and Japanese banks. This strategy of raising equity at the platform level and debt at the project level will continue. For our 2030 target, we aim to have at least 17 GW of operating capacity, which will provide around 50 billion units of power to various customers and potentially government discoms, depending on the PPAs we sign. This will require around ₹1 trillion in investment. On an average, we’re looking at a debt-to-equity ratio of about 78 per cent debt and 23 per cent equity. The projects we have signed up for in Rajasthan and Andhra Pradesh reflect our intent to develop these capacities. These projects will be split across various PPAs, rather than being monolithic ones. For instance, in Rajasthan, we plan to develop three solar parks of 2 GW each in different districts, plus 1 GW of wind power in two districts, and 2 GW of pumped storage projects (PSPs).

 

You have been in talks with investors for equity plans. Can you share any updates?

 

There were discussions about equity capital nearly six-eight months ago. However, to give you some context, of the ₹5,000 crore of committed equity capital from KKR, we have only drawn around ₹600–700 crore so far (till April). We still have significant equity left to be drawn. As some of our projects approach commissioning, we’re looking at refinancing options to generate top-ups from the refinanced facilities. We are confident that we have enough visibility to cover our capital expenditure requirements for the next 18-24 months. After that, we will reassess and decide whether we need additional equity, either through private capital or by accessing public markets. For now, we don’t require any additional funding.

 

Will you be targeting segments like green hydrogen and green ammonia?

 

We are observing the space with a lot of interest. At present, the demand landscape for green hydrogen and ammonia is still forming — it’s limited to a select set of geographies and industrial users. While there’s substantial supply-side enthusiasm globally, end-user adoption remains in its early phase. Given this context, Serentica is not actively pursuing green hydrogen or ammonia in the immediate term. We prefer to focus on segments with established demand and clarity on returns, while continuing to monitor any emerging opportunity closely.

 

There has been a sharp drop in Chinese module prices. How do you view this, and what’s your take on the impact of US tariffs in the near term?

 

Yes, both solar modules and battery storage technologies have seen significant price drops due to supply-demand shifts and some countries avoiding Chinese imports. That’s worked in favour of customers like us. In India, the government has implemented an Approved List of Models and Manufacturers (ALMM), which mandates that final module fabrication happens domestically. Soon, ALMM may apply to cells too, which could push module prices up slightly, something that will ultimately reflect in tariffs passed on to customers. This could also mean that Indian manufacturers, previously exporting to other geographies, may now redirect more supply to the Indian market.