Hero Future Energies (HFE), the renewable energy firm of the Pawan Munjal-led Hero Group, recently raised US$ 125 million in equity infusion from the International Finance Corporation (IFC) – the private sector investment arm of the World Bank – and the IFC Global Infrastructure Fund. HFE today signed an agreement with IFC for the investment, the proceeds of which will be used to fund the construction of solar and wind power plants of HFE. E&Y was the transaction advisor to HFE. Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero Moto Corp said, “We at Hero Group keep expanding our horizon beyond the flagship automotive business to nurture socially responsible entrepreneurship, even as we continue to build on the existing competitive strength of the Group. Hero Future Energies is a key pillar of this strategy. This marquee deal with the International Finance Corporation will empower us to take advantage of the potent ecosystem.”
Rahul Munjal, Chairman & Managing Director, Hero Future Energies, said, “Since our inception in 2012, HFE has been funded by the family. In this rapidly evolving sunrise industry, where targets are getting increasingly ambitious, partnering with like-minded institutions with complementary skill set is the future. I am happy to join hands with IFC, in our endeavour to achieve new goal of 2.7 GW renewable energy capacity by 2020. ” Sunil Jain, Chief Executive Officer, Hero Future Energies commented, “This partnership will fuel our ambitions to tap into the incredible opportunities that lies in both domestic and overseas markets as well as new technologies namely storage, hybrid projects etc. This association is also a validation of our core strengths in timely project delivery, unwavering focus on health safety & environment (HSE) standards, developmental capabilities, stringent asset quality standards and design and engineering skills. We will also aggressively focus on expanding our promising rooftop solar portfolio.”
“With this partnership with Hero Future Energies, IFC is helping accelerate the transition of the renewable energy generation business to mainstream power sector. Through the Global Infrastructure Fund, IFC is also bringing in the support of international institutional investors,” said Mengistu Alemayehu, Regional Director, IFC South Asia. “Such a development will boost confidence of other large business groups and international investors to contribute to India’s ambitious renewable energy targets and make a significant difference in ramping up renewable-energy capacity in the country.” Huge advances have been made in the past few years to achieve India’s ambitious renewable energy targets of adding 175 GW of renewable energy, including addition of 100 GW of solar power, by the year 2022. Power generation from renewable energy sources like solar and wind has increased to 7.54 per of the total electricity generated in the country during April-September this fiscal. The total installed capacity from various renewable energy sources in the country as on October 31, 2016 is 28,279 MW from wind, 8,728 MW from solar, 4,997 MW from bio-power and 4,323 MW from small hydro power.