KKR & Co Inc., an American global investment company, announced that it would work exclusively with Crossover Energy, a renewable energy consultant, to develop solar and wind power plants as well as energy storage systems in North America.
Ever since President Joe Biden's administration recommitted the US to the Paris climate agreement, private equity firms have been ramping up their investments in sustainable energy projects.
The White House announced in April that it would support a national clean energy obligation that would require the US grid to get the majority of its power from emissions-free sources by 2030, in line with Joe Biden's vow to reduce greenhouse gas emissions by half across the economy in the next decade.
KKR is a prominent global investment firm that manages various asset classes such as private equity, credit, and real assets, as well as hedge funds through strategic partners. Under this partnership, its infrastructure division will supervise the origination, development, fundraising, construction, and administration of sustainable energy projects.
Customers like utilities, municipalities, and industrial businesses will be targeted for power purchase, tolling, and build-transfer agreements.
KKR’s Managing Director, Benoit Allehaut, said in an interview – Energy storage is a key factor in transforming the energy industry. To grab the opportunity, one needs to collaborate with experts who have the capability of understanding how to modify solutions for specific customers.
KKR, which currently manages $28 billion in infrastructure assets, said that it has invested more than $4.7 billion in renewable energy companies across the globe. These include the Indian renewable energy platform Virescent Infrastructure and Florida’s NextEra Energy Inc.
As stated by a source earlier in March, currently KKR is raising a $12 billion flagship fund for obtaining infrastructure assets from renewable energy projects to oil and gas pipelines.