Global investment firm KKR and Hero Future Energies (HFE), the renewable energy arm of the Hero Group, announced the signing of definitive agreements under which KKR and the Hero Group will invest $450 million in the Company.
This investment will position HFE for continued growth and support its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, and into new markets over time. Through its range of solutions, HFE will also look to support companies in their efforts to decarbonize and transition towards sustainable energy sources to achieve their net zero emission goals, the statement said.
Founded in 2012, Hero Future Energies is a leading independent power producer (IPP) in India with a diversified portfolio of 1.6 GW of operating solar and wind projects, a statement said.
Beyond supporting HFE’s growth, this round of investment led by KKR will help accelerate India’s energy transition. It advances the country’s significant effort to expand renewable energy capacity, reduce carbon emissions by 1 billion tons by 2030 and achieve net-zero emissions by 2070, as energy demand continues to grow alongside economic development. Private sector participation, including from global investors, is expected to be a key enabler for India to meet these targets, in lockstep with supportive government policies, according to the statement.
Hardik Shah, Partner at KKR, said, “Hero Future Energies is a pioneer in India’s renewables sector, and has a strong track record of delivering innovative clean energy solutions to support India’s renewable energy ambitions. HFE’s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally.”
Rahul Munjal, Chairman & Managing Director of Hero Future Energies, said, “I am happy to welcome KKR as a strategic partner in our company to achieve our goal of expanding renewable energy capacity across multiple geographies by 2025. With this investment, Hero Future Energies will work to accelerate India’s energy transition and contribute to the Indian government’s target of generating half the country’s power from non-fossil fuel sources by 2030.”
Srivatsan Iyer, Global CEO of Hero Future Energies, added, “KKR’s investment will drive Hero Future Energies’ growth in the rapidly growing renewable energy markets domestically and globally, as well as in new technologies such as battery storage, solar-wind hybrid projects, round-the-clock power, and green hydrogen, among others. This partnership is also a validation of our core strengths and capabilities in design and engineering, development, and project execution, while achieving excellence in health, safety and environment standards.”
Isabel Chatterton, Asia Pacific Regional Head of Infrastructure at IFC, said, “IFC is pleased to welcome KKR as a strategic partner on our longstanding investment in Hero Future Energies. This investment will enhance the company’s growth plans both in India and globally, meeting surging energy demands and mitigating against climate impacts with reliable and affordable clean energy solutions. Hero Future Energies has been successful in building a leading renewables platform that will help accelerate the transition to a sustainable, green economy.”
Established in 2012, Hero Future Energies is present across multiple states in India, Bangladesh, Vietnam, Singapore, Ukraine and the UK. The company is an independent power producer (IPP) with about 1.6 GW of operating assets across utility and commercial & industrial sectors. The company plans to invest progressively in grid connected solar and wind, rooftop sectors, energy storage and green hydrogen over the next few years in India and internationally, the statement said.
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