SK Inc. and global investment firm KKR have signed definitive agreements to launch a joint renewable energy platform in South Korea valued at approximately 2 trillion South Korean Won (KRW) or approx. 1.3 billion US dollars.
The transaction consolidates renewable energy assets previously held by various SK affiliates into a single integrated entity. The portfolio includes solar, onshore and offshore wind, and fuel cell assets, but excludes hydrogen operations. KKR will hold management control during the initial phase of the venture, while SK will participate as an equity investor with options to negotiate control rights in the future.
The new entity integrates assets from SK Innovation, SK ecoplant, and SK eternix. By unifying these operations, the platform will oversee the entire value chain, including development, construction, operation, and maintenance.
The venture launches with an operational capacity of approximately 1.7 gigawatts (GW). Plans are in place to expand the development pipeline to a total capacity of 10GW, which the companies state is equivalent to the continuous power requirement of 100 large-scale, 100-megawatt data centres. This scale is intended to supply power to industrial consumers in South Korea, particularly within the artificial intelligence data sector and semiconductor manufacturing lines.
Keith Kim, Partner at KKR, noted that South Korea represents a significant renewable energy market due to corporate clean power demand across the manufacturing and technology sectors.
For SK, the consolidation forms part of a broader corporate portfolio rebalancing strategy intended to reallocate capital and adjust its business structure. KKR is funding the transaction primarily through its Asia Pacific infrastructure strategy, adding to its existing regional energy transition investments which include platforms in India and Australia.
