South Korea’s SK Inc and global investment firm KKR have signed definitive agreements to launch what they said will be South Korea’s largest renewable energy platform, valued at KRW 2 trillion ($1.3 billion). This comes as demand for clean power rises from AI data centres, semiconductor production facilities and other industrial users.
The companies announced the deal, wanting to bring together renewable energy assets from SK affiliates into a single platform spanning solar, onshore and offshore wind, and fuel cells.
The platform will start with about 1.7 GW of operating capacity and has a development pipeline that could increase total capacity to 10 GW. According to the companies, the platform would be capable of continuously powering 100 large-scale data centres, each with 100MW of capacity.
KKR will hold management control in the initial phase, while SK will participate as an equity investor and retain the option to pursue control rights in the future.
The companies said the platform will help South Korea address growing demand for clean electricity from AI infrastructure, semiconductor manufacturing and other energy-intensive industries.
By combining renewable energy businesses from SK Innovation, SK ecoplant and SK eternix, the venture aims to integrate the value chain from project development and construction to operations and maintenance.
The platform will also manage renewable energy assets across solar, offshore wind, onshore wind and fuel cells. It excludes hydrogen-based projects. The companies said the combined structure would improve operational efficiency and create economies of scale.
Keith Kim, Partner at KKR, said the venture would build on growing corporate demand for clean power in South Korea. “We are delighted to work alongside SK, a strategic partner with deep local operational capability,” Kim said. “Together, we are establishing a scaled renewable energy platform that can supply reliable clean power to Korea’s most demanding industrial users.”
The deal marks the latest collaboration between SK and KKR. SK said it is integrating its renewable energy businesses as part of a portfolio rebalancing effort designed to strengthen competitiveness and support long-term growth. The company said combining KKR’s capital with SK’s execution capabilities would help meet rising clean energy demand.
KKR is making the investment through its Asia-Pacific infrastructure strategy. The investment firm said it manages more than $100 billion in infrastructure assets globally and has invested over $31 billion in energy transition and renewable infrastructure projects since 2011. In Asia-Pacific, its renewable energy investments include India-based Serentica Renewables and Australian platforms CleanPeak Energy and Zenith Energy.
SK said the platform would strengthen the foundation of its renewable energy business, support future growth, and improve capital efficiency across its portfolio.
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