Hero Future Energies, the renewable energy arm of the Hero Group, has unveiled an ambitious plan to invest $20 billion in expanding its renewable energy capacity to 30 GW by 2030. This would mark a significant increase from its current capacity of 1.9 GW, nearly a 16-fold rise, according to chairman Rahul Munjal, who shared the news at an industry event on September 17.
Focus on Solar, Wind, and Battery Storage
The investment will target the development of wind, solar, and battery storage projects, a reflection of the company’s commitment to diversifying its renewable energy portfolio. Munjal revealed that the financing will come from internal resources, combining debt and equity. Of the planned 30 GW, Hero Future Energies aims to commission 3.4 GW within the next two years, with these projects already under construction.
Hero Future Energies, headquartered in London, operates across multiple regions, including India, Ukraine, and Vietnam. The company is part of a broader trend among Indian energy companies ramping up clean energy capacity, as the country strives to meet its national target of adding 500 GW of renewable energy by 2030.
India’s Race Towards Clean Energy
This development aligns with a wider industry push towards renewable energy in India. Tata Power, for example, has committed $9 billion to quadruple its renewable capacity, while other major players like Reliance Industries and Adani Green Energy have also announced large-scale investments. These moves coincide with India’s broader objective to reduce carbon emissions and boost its renewable energy infrastructure.
Strategic Fundraising Initiatives
In addition to its expansion plans, Hero Future Energies has been exploring options to raise capital through a pre-IPO fundraising. According to a report in Mint from earlier this year, the company is working with JP Morgan to raise around $200 million through private equity investments, following a $450 million investment from Hero Group and global investment firm KKR in September 2022.
Speaking in August 2023, Munjal indicated that the company is open to various funding strategies over the next two to three years, including an initial public offering (IPO) and private investments. He emphasized that these efforts would further position Hero Future Energies as a key player in the global renewable energy market.
As India continues to prioritize clean energy, Hero Future Energies’ massive investment signals its intent to remain at the forefront of the country’s green transition.
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