US equity giant bets $500 million on Aussie commercial solar and storage platform

New York-based investment giant KKR will tip $500 million into Australian outfit CleanPeak Energy, in support of the Sydney-based firm’s plan to roll out solar, storage and microgrid solutions across Australia’s commercial and industrial sector.

The agreement will see KKR commit $500 million from funds under its management to support CleanPeak in growing and developing a pipeline of distributed solar, battery storage, and microgrid solutions across Australia’s commercial and industrial C&I sector.

CleanPeak currently operates over 50 distributed generation sites across Australia including over 40 megawatts (MW) of rooftop solar, 100MW of utility-scale solar, and 35 megawatt-hours (MWh) of battery energy storage system projects, as well as operating microgrids providing energy and thermal services for more than 1 million square metres of floorspace.

Included among CleanPeak’s current portfolio of projects is the 40 MW Wangaratta, 15 MW Mugga Lane, and 7.5 MW Moama solar farms.

The company is also in the process of delivering over $200 million worth of construction projects in the sector which will deliver a further 100MW of solar and 300MWh of battery projects.

“KKR is a perfect strategic partner for us as we seek to rapidly expand renewable energy solutions for our customers,” said Philip Graham, CleanPeak chief executive.

“They bring deep energy transition expertise, financial strength and a partnership mindset that will allow CleanPeak to continue to offer net zero solutions at the same time as accelerating our growth plans through bolt-on acquisitions. Together, we will deliver reliable, lower-carbon energy for corporate Australia.”

The $500 million investment is being made from KKR’s Global Climate Transition strategy, marking its first investment in the Asia-Pacific region and its sixth transaction globally.

“Australia’s C&I energy market is at an inflection point as corporates seek bankable pathways to better energy efficiency, reliability and affordability,” said Neil Arora, Partner and head of KKR’s Climate Transition strategy for Asia.

“By combining CleanPeak’s proven operating platform with KKR’s global network, operational expertise, and deep experience across our energy and infrastructure teams, we are well positioned to unlock significant opportunities for corporate customers looking to decarbonise and reduce their energy bills.”