SK and KKR Form $1.3 Billion Renewable Energy Platform in South Korea

SK Inc. and private equity firm KKR have agreed to establish what the companies describe as South Korea's largest renewable energy platform, combining solar, wind, and fuel cell assets into a KRW 2 trillion ($1.3 billion) business aimed at supplying clean electricity to the country's rapidly growing industrial sector.

Under definitive agreements announced Tuesday, funds managed by KKR and SK will consolidate renewable energy assets previously owned by several SK affiliates, including SK Innovation, SK ecoplant, and SK eternix, into a single integrated platform. KKR will initially hold management control, while SK will remain an equity investor with the option to pursue control rights in the future.

The platform will launch with approximately 1.7 gigawatts of operating renewable energy capacity and a development pipeline that could expand total capacity to 10 GW. According to the companies, that level of generation would be sufficient to continuously power around 100 large-scale data centers with 100-megawatt capacity each.

The portfolio spans solar, onshore wind, offshore wind and fuel cell projects, excluding hydrogen, and is intended to integrate the full renewable energy value chain from project development and construction to operations and maintenance.

The investment comes as South Korea faces rising electricity demand driven by the expansion of AI data centers, semiconductor fabrication plants and other energy-intensive industries. Growing corporate demand for clean power has also increased interest in renewable generation as companies seek to meet decarbonization targets while securing reliable electricity supplies.

KKR said the investment will be funded primarily through its Asia Pacific infrastructure strategy. The firm has invested more than $31 billion in energy transition and renewable infrastructure globally since 2011 and has backed similar industrial clean energy platforms across the Asia-Pacific region, including India's Serentica Renewables and Australia's CleanPeak Energy and Zenith Energy.

For SK, the transaction forms part of a broader portfolio restructuring designed to improve capital efficiency while strengthening its renewable energy business. The company said combining its renewable assets with KKR's capital and infrastructure expertise would help position the platform to meet long-term demand for clean electricity in South Korea's industrial sector.

The deal also deepens an existing relationship between SK and KKR, which have previously collaborated on multiple investments. Financial terms beyond the platform's overall valuation were not disclosed.