Hero Future Energies set to make inroads into the renewable energy market in South-East Asia, Africa as well as Europe
Hero Future Energies, the clean energy arm of the Hero Group, is expanding its presence in seven countries including South East Asia and Africa which are opening up their renewable energy market. HFE plans to add one Gw of solar and wind power projects every year, of which 20 per cent of the capacity would come from its international projects.
HFE is the first Indian independent renewable power producer to expand its business in other countries.
Sunil Jain, CEO, HFE, said the company has targeted to add 5 Gw by 2022. The current capacity stands at 1.2 Gw and another 500 Mw under construction. HFE also plans to open two branch offices in London and Singapore. Confirming the development, Jain told Business Standard, HFE is entering developing markets such as East and North Africa, Philippines, Indonesia and matured ones such as Thailand and some European countries.
“It has been the company’s ambition to go global. Unlike India, most of these markets do not offer projects through competitive bidding. But there is growth potential. At the same time, Europe offers a lot of opportunity for us to upgrade our technology. Off-shore wind for instance is huge business in Europe and we plan to learn best practices from the same,” said Jain.
Asked if the company will have any joint venture with local companies in the markets it’s entering, Jain said they are open to technological tie-ups and will explore a JV if needed.
HFE is also planning a 2-Mw solar plus storage power project on pilot basis in India. “Storage would be a game changer for the Indian renewable energy sector. If storage follows the same price trajectory as that of solar tariffs in India, it will change the electricity market in the country,” Jain said.
HFE set up India’s first solar-wind hybrid power project of 78 Mw (28 Mw solar plus 50 Mw wind) in Karnataka, this year.
HFE, which was launched in 2012, has grown to be the one of the top five renewable companies in the country. Initially into wind power, the company has expanded in solar. Rahul Munjal is the chairman and managing director for HFE. The company raised $125 million in January 2017 as equity from International Finance Corporation (IFC), the investment arm of World Bank.
In 2016, HFE issued India’s first certified climate bond for expansion of its wind portfolio, through its wind holding entity. The entity secured a funding of Rs 3 billion through issuance of rated and secured non-convertible debentures.