SK, KKR Create KRW 2 Trillion South Korea Renewables Platform

South Korean conglomerate SK Inc. and global investment firm KKR have signed definitive agreements to establish what they describe as South Korea’s largest renewable energy platform, with a planned capacity of 10 GW. 

Valued at KRW 2 trillion, the platform will combine renewable energy assets from SK affiliates, including solar, onshore and offshore wind, and fuel cells, into a single integrated business. 

The new platform will manage about 1.7 GW of operating renewable energy capacity and will have a development pipeline that is expected to increase total capacity to 10 GW. This, according to project partners, will be enough to ‘simultaneously and continuously’ power 100 large-scale 100 MW-class data centers. 

The companies said the expanded portfolio is intended to help meet rising clean electricity demand from AI data centers, semiconductor manufacturing and other energy-intensive industries in the country. 

For SK, the agreement with the US-based private equity firm is part of a broader portfolio rebalancing effort. SK said the platform will help grow its renewable energy business while supporting its wider efforts to improve capital efficiency and competitiveness. 

KKR will hold management control of the joint platform during the initial phase, while SK will remain an equity investor with the option to discuss future control rights. The platform brings together renewable energy businesses from SK Innovation, SK ecoplant and SK eternix, covering the value chain from project development and construction to operations and maintenance. 

“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.” 

South Korea targets 100 GW of renewable energy deployment, driven by solar, by 2030, which the country’s Ministry of Climate, Energy and Environment says will be realized ahead of schedule. Widespread decarbonization and electrification of industries are among the steps towards this direction, according to the plan (see South Korea To Target 100 GW RE Capacity Ahead Of 2030).