Hero Future Energies (HFE), the renewable energy arm of the Hero Group, has entered into a strategic partnership with Japan-based Sumitomo Corporation for the development of an approximately 500 MWp hybrid renewable energy project in Bidar, Karnataka.
Under the partnership, Sumitomo Corporation will acquire a 49% stake in the special purpose vehicle (SPV) developing the project, while Hero Future Energies will retain the remaining 51% stake.
The project will combine wind and solar power generation with large-scale battery energy storage, reflecting the growing focus on hybrid renewable projects capable of delivering more reliable and firm power to the grid.
Rahul Munjal, Founder and Chairman of Hero Future Energies, said the partnership with Sumitomo Corporation represents an endorsement of the company’s ability to develop and execute complex renewable energy projects at scale. “We are delighted to welcome Sumitomo Corporation as a strategic partner in this project. This partnership is an endorsement of HFE’s capabilities to execute complex renewable energy projects at scale,” Munjal said.
He added that strategic partnerships bringing together capital and execution expertise would become increasingly important as India enters a new phase of its energy transition. “As India enters the next phase of its energy transition, partnerships such as the one with Sumitomo will play a critical role in bringing together capital and execution excellence to accelerate all-round adoption of clean energy,” Munjal said.
Sumitomo Corporation also highlighted the growing opportunity presented by India’s rapidly expanding renewable energy market.
Jun Minase, General Manager, Overseas Energy Solution SBU of Sumitomo Corporation, said the company sees significant potential in Hero Future Energies’ growth plans and intends to use the partnership to strengthen its renewable energy platform in India. “We are very pleased to collaborate with Hero Future Energies. We see significant potential in HFE’s clearly defined growth ambitions, particularly as the share of renewable energy continues to grow rapidly within India’s energy mix,” Minase said.
He added that the partnership would support Sumitomo Corporation’s efforts to pursue new business opportunities while contributing to a stable supply of renewable energy.
Srivatsan Iyer, Global CEO of Hero Future Energies, said the company has developed capabilities spanning project development, design and engineering, as well as the execution of complex renewable energy projects designed to provide firm power to the grid. “Hero Future Energies has built strong capabilities across project development, design and engineering and execution of complex renewable energy projects that can provide firm power to the grid,” Iyer said.
According to Iyer, the company’s strategy has focused on delivering such projects with high standards of quality, safety and operational excellence while building a diversified portfolio across technologies and geographies.
He said the partnership with Sumitomo Corporation would further enhance HFE’s ability to execute its growing pipeline and scale its clean energy portfolio.
The transaction comes amid increasing interest from global strategic investors and institutional capital providers in India’s renewable energy sector. Rising energy demand, coupled with a greater policy and market focus on clean technologies, is creating opportunities for large-scale investments in renewable generation and energy storage.
The availability of deeper pools of long-term capital is also expected to support the continued expansion of India’s renewable energy market and the development of increasingly sophisticated hybrid projects combining multiple generation technologies with storage.
