Hero Future Energies to invest $20 billion to increase renewable energy capacity to 30 GW by 2030

Hero Future Energies, the power generation arm of the Hero Group, plans to invest $20 billion in the next six years to expand its capacity, Hero Group Chairman Rahul Munjal told Reuters.

The company plans to increase its power generation capacity by nearly 16 times from the current level, from 1.9 gigawatts to 30 gigawatts, by 2030, Mongal told the agency at an industry event on September 17.

Solar, wind, battery storage

The 30 GW of new capacity planned will be from wind, solar and battery storage technologies, the report said. Munjal told Reuters the funds will be raised internally through a mix of debt and equity.

The company expects to commission 3.4 GW of targeted new capacity over the next two years, with projects currently under construction, the report said.

London-based Hero Future Energies has a portfolio of operating and under-construction projects in India, Ukraine and Vietnam.

Clean energy targets

According to reports, Indian companies are currently comprehensively increasing renewable energy production capacity to contribute to the Indian central government’s emission reduction target of adding 500 gigawatts of clean energy by 2030.

Hero Future Energies’ rival Tata Power has also announced an investment of $9 billion to quadruple its renewable energy capacity. Apart from this, Reliance Industries and Adani Green Energy also pledged to increase green energy at the recent RE-Invest conference in Gandhinagar.

Pre-IPO Financing

In February, Mint reported that Hero Future Energies was looking to hire JP Morgan for pre-IPO funding. The deal is expected to have an equity value of about $200 million, two people familiar with the matter said.

“The transaction is expected to take place. It is at a very early stage,” said the two people cited above, who asked not to be identified.

The development comes against the backdrop of the green energy company raising $450 million in September 2022 from parent company Hero Group and global investment firm KKR.

Spokespeople for Hero Future Energies and JPMorgan declined to comment.

In an interview with Mint in August 2023, Munjal said the company will consider several options to raise funds in the next two to three years, including an IPO. He added that the company will also plan new financing, including private investments and entering the public markets.

(Source: Reuters)