US private equity firm KKR has signed definitive agreements under which funds that it manages will commit A$500 million ( US$328.27 million ) to partner with CleanPeak Energy in order to rapidly grow its distributed energy platform.

The investment will support the energy company in growing and developing a pipeline of distributed solar, battery storage and micro-grid solutions for Australia’s commercial and industrial sector.

The company, co-founded by Philip Graham and Jon Hare in 2017, is a provider of fully financed, integrated solar and storage systems for blue-chip corporates across Australia. It operates over 50 distributed generation sites across Australia, including over 140 megawatts ( MW ) of solar assets and 35MW-hours of battery energy storage system projects. It is currently delivering over US$200 million of construction projects in the sector.

KKR is making this investment from its Global Climate Transition strategy. This investment marks the strategy’s first in Asia-Pacific and its sixth transaction globally. Since 2010, the firm has committed more than US$34 billion in climate and environmental sustainability investments.

Past investments have included Zenobē, a UK-based transport electrification and battery storage solutions specialist; EGC, an energy service provider in Germany; Dawsongroup, an independent asset leasing business that provides a diverse range of business-critical solutions; Avantus, a solar and solar-plus-storage developer in the US; and IGNIS P2X, an industrial decarbonization platform.

“Australia’s C&I energy market is at an inflection point as corporates seek bankable pathways to better energy efficiency, reliability and affordability,” says Neil Arora, partner and head of the equity firm’s climate transition strategy for Asia. “By combining CleanPeak’s proven operating platform with our 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.”

Philip Graham, the energy company’s CEO, adds: “KKR is a perfect strategic partner for us as we seek to rapidly expand renewable energy solutions for our customers. They bring deep energy transition expertise, financial strength and a partnership mindset that will allow our firm 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.”