Renewable Energy

KKR invests in Hero Future Energies in $450M transaction

KKR, a leading global investment firm, and Hero Future Energies, the renewable energy arm of the Hero Group, announced the signing of definitive agreements under which KKR and the Hero Group will invest $450 million in the Company. This investment will position HFE for continued growth and support its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, and into new markets over time. Through its range of solutions, HFE will also look to support companies in their efforts to decarbonize and transition towards sustainable energy sources to achieve their net-zero emission goals.

Founded in 2012, Hero Future Energies is a leading independent power producer (IPP) in India with a diversified portfolio of 1.6 GW of operating solar and wind projects.

Beyond supporting HFEโ€™s growth, this round of investment led by KKR will help accelerate Indiaโ€™s energy transition. It advances the countryโ€™s significant effort to expand renewable energy capacity, reduce carbon emissions by 1 billion tons by 2030 and achieve net-zero emissions by 2070, as energy demand continues to grow alongside economic development. Private sector participation, including from global investors, is expected to be a key enabler for India to meet these targets, in lockstep with supportive government policies.

Hardik Shah, Partner at KKR, said, โ€œHero Future Energies is a pioneer in Indiaโ€™s renewables sector, and has a strong track record of delivering innovative clean energy solutions to support Indiaโ€™s renewable energy ambitions. HFEโ€™s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFEโ€™s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally.โ€

Rahul Munjal, CMD, Hero Future Energies, said, โ€œI am happy to welcome KKR as a strategic partner in our company to achieve our goal of expanding renewable energy capacity across multiple geographies by 2025. With this investment, Hero Future Energies will work to accelerate Indiaโ€™s energy transition and contribute to the Indian governmentโ€™s target of generating half the countryโ€™s power from non-fossil fuel sources by 2030.โ€

Srivatsan Iyer, Global CEO of Hero Future Energies, added, โ€œKKRโ€™s investment will drive Hero Future Energiesโ€™ growth in the rapidly growing renewable energy markets domestically and globally, as well as in new technologies such as battery storage, solar-wind hybrid projects, round-the-clock power, and green hydrogen, among others. This partnership is also a validation of our core strengths and capabilities in design and engineering, development, and project execution, while achieving excellence in health, safety and environment standards.โ€

KKR makes its investment from its Asia Pacific Infrastructure Fund. The investment in Hero Future Energies builds on KKRโ€™s extensive experience in India and the renewables sector. Since 2011, KKR has deployed over $15 billion in equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23 GW, as of December 31, 2021.

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