KKR And SK Launch South Korea's Largest Renewable Energy Platform

By Tsvetana Paraskova of OilPrice.com

Global investment firm KKR and South Korea’s industrial conglomerate SK Inc are launching the single biggest renewable energy platform in South Korea to help meet growing power demand from AI and chip manufacturing.

KKR and SK Inc are creating the platform, valued at about $1.3 billion, or 2 trillion South Korean won, to combine 1.7 gigawatts (GW) of clean energy capacity in operation and a pipeline of projects in development that would boost the platform’s total capacity to 10 GW, the investment firm said in a statement. 

The renewable electricity will help meet South Korea’s surging clean-power demand from AI data centers and semiconductor manufacturing, according to the global investor.  

The 10 GW capacity targeted by the platform would be capable of simultaneously and continuously powering 100 large-scale, 100MW-class data centers, KKR said.

“At this scale, the Platform is well positioned to become a reliable, large-scale source of clean power for Korea's most demanding industrial users, from AI data centers to global semiconductor production lines, and more,” the global investment firm said.

KKR will have management control of the platform in its initial phase, while SK will participate as an equity investor and retain the flexibility to pursue control rights through future discussions.

“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,” said Keith Kim, Partner at KKR.

“Together, we are establishing a leading, scaled renewable energy platform that can supply reliable clean power to Korea's most demanding industrial users.”

In April, while South Korea was scrambling for oil supply not passing through the Strait of Hormuz, the Korean Ministry of Climate, Energy, and Environment said the country would target to generate at least 20% of its power supply from renewables by 2030, up from about 11% now.

“We will swiftly implement the energy transition plan to make sure that South Korea remains resilient to external shocks, such as the ongoing conflict in the Middle East,” Climate Minister Kim Sung-whan said in April.