Hero Future Energies is under discussion as global investors seek interest in acquiring a 30 per cent stake with the aim to expand operations in India
Energy firms, Masdar Clean Energy, Sembcorp and Petronas are, reportedly, planning to buy around 30 per cent of Hero group’s renewable energy wing, Hero Future Energies. Malaysia-based Petronas and Abu Dhabi’s Masdar have bid around $300-325 million for the purpose.
Hero Future Energies
Hero’s energy arm has been able to position itself among the top five renewable firms in India with an installed solar and wind power capacity of 1.2 GW spanned across 10 states. Launched in 2012, the firm’s focus areas are in the wind, solar photovoltaic (grid connected) and rooftop plants segments. It has also been working on setting up a 500 MW and an additional plan of building 300 MW solar power capacity. The company is reported to be eyeing to draw around $300 million, for which it is seeking the American investment bank, JP Morgan’s advice. Hero’s aim is to strengthen its energy portfolio by raising its current capacity to 3.5 GW by 2022.
Investments in solar segment
The three energy firms that are eyeing to acquire 30 per cent of Hero Energies have earlier made investments across the world, thereby expanding their networks. Masdar has its presence in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain. It has invested around $2.7 billion in this sector. Petronas also has its work based in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain.
Singapore-based Sembcorp is also looking at the renewable energy sector and plans to make investments to scale up its current capacity of 1.7 GW. Its solar capacity is around 35 MW. India has been able to attract investments and interests of global solar power players over the past few months. The country’s renewable energy is projected to stand at 140 GW by 2023, of which, solar energy is expected to be half of it.
