KKR, a leading global investment firm, and Hero Future Energies (“HFE” or the “Company”), the renewable energy arm of the Hero Group, today 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.
Hardik Shah, Partner at KKR, said, “HFE’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 HFE’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.”
Beyond supporting HFE’s growth, this round of investment led by KKR will help accelerate India’s energy transition. It advances the country’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.
Rahul Munjal, Chairman & Managing Director of Hero Future Energies, said, “With this investment, Hero Future Energies will work to accelerate India’s energy transition and contribute to the Indian government’s target of generating half the country’s power from non-fossil fuel sources by 2030.”
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.
Srivatsan Iyer, Global CEO of Hero Future Energies, added, “KKR’s investment will drive Hero Future Energies’ 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.”
Isabel Chatterton, Asia Pacific Regional Head of Infrastructure at IFC, said, “This investment will enhance the company’s growth plans both in India and globally, meeting surging energy demands and mitigating against climate impacts with reliable and affordable clean energy solutions.”
KKR makes its investment from its Asia Pacific Infrastructure Fund. The investment in Hero Future Energies builds on KKR’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.