IFC invests $125 million in India’s Hero Future Energies

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Late last week the World Bank’s International Finance Corporation (IFC) announced that with its Global Infrastructure Fund it will invest $125 million in equity in Hero Future Energies, the renewable energy division of India’s Hero Group.

IFC estimates that this will allow Hero to establish 1 GW of solar and wind plants in India over the next 12 months. The developer currently clams a presence in 12 Indian states, with an installed capacity of over 360 MW.

But that is very little to compared to what the company has planned. Hero has set a goal to reach 2.7 GW of renewable energy capacity by 2020, and according to Mercom Capital the company is well on its way. Mercom’s India Project Tracker estimates that Hero has 505 MW of solar projects under development, making it the ninth largest solar developer by pipeline in the nation.

“This partnership will fuel our ambitions to tap into the incredible opportunity that lies in both domestic and overseas markets as well as new technologies namely storage, hybrid projects among others,” stated Hero Future Energies CEO Sunil Jain.

“This association is also a validation of our core strengths in timely project delivery, unwavering focus on health safety and environment standards, developmental capabilities, stringent asset quality standards and design and engineering skills. We will also aggressively focus on expanding our promising rooftop solar portfolio.”

IFC has been investing in India since 2009, and notes that its portfolio companies have set up over 3 GW of renewable energy projects in the nation, and the IFC’s advisory team is currently working with the state of Madhya Pradesh to build a 750 MW solar PV plant, which is larger than any single-site solar plant currently online.

IFC estimates a “committed portfolio” of over $5 billion at the end of the first half of 2016. In fiscal year 2016 alone, the organization committed over $1.1 billion in investments in India.

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