United Arab Emirates’ Masdar (Abu Dhabi Future Energy Company) has acquired around 20% stake in Hero Future Energies—the renewable energy arm of Hero Group—for $150 million. The clean energy producer will use the amount to fund its expansion, including in international markets.
Masdar is wholly owned by the emirate’s state-owned Mubadala Investment Company. The acquisition of a stake in Hero Future Energies marks its first contribution to the clean energy sector in India, and adds to its growing international portfolio.
“Masdar is committed to investing in commercial opportunities in renewable energy and clean technologies across the region,” said Yousif Al Ali, Executive Director for Clean Energy at Masdar.
“Emerging economies like India face the critical need for modern energy services to meet the demand of their growing populations. Further expansion of the renewable energy sector in developing countries has therefore a crucial role to play.”
Masdar has developed renewable energy projects in more than 25 countries, including major utility-scale projects and those that improve energy access in rural communities and least developed countries.
“After more than 13 years investing in some of the world’s largest renewable energy projects, Masdar has developed a definitive strategy: deploying proven technology at a scale to accelerate its commercialisation and to attract further investment,” added Al Ali. “We are excited to be working with the team at Hero to explore the great many renewable energy opportunities offered by the India market and other international growth markets.”
Hero Future Energies is presently operating approximately 1,500 MW of wind and solar assets, and has around 1,000 MW under construction, with another 1,000 MW under development. The company plans to reach 5 GW of solar capacity in the next three to four years.