November 12 (Renewables Now) - Abu Dhabi Future Energy Company PJSC, better known as Masdar, said on Monday it has acquired “a robust minority stake” of an undisclosed size in Indian renewable power producer Hero Future Energies.
The target company, part of the Hero Group, was set up in 2012 and currently has a 1,200-MW portfolio of installed wind and solar plants plus an additional 500 MW under construction and 200 MW in the pipeline. Hero Future Energies’ goal is to have 3.5 GW of installed photovoltaic (PV) capacity by 2022.
The deal, the value of which was not provided, marks government-owned Masdar’s entry into the Indian renewable energy sector. Local media last month reported that the UAE group was gearing to buy a 20% stake in Hero Future Energies for USD 150 million (EUR 135.9m). According to those reports, after Masdar’s investment, 53% of the power producer's stock will be held by its promoters, among which is the World Bank’s International Finance Corp (IFC).
“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. He added that emerging nations like India are in “critical need” for modern energy services, which in turn gives renewables a “crucial role to play.”
(USD 1.0 = EUR 0.906)