A subsidiary of India’s largest two-wheeler manufacturer, Hero MotoCorp, is planning to raise $100 million to fund expansion in the country’s rapidly growing renewable energy market.
Hero Future Energies has announced plans to raise $100 million to fund project development in the solar and wind energy sectors, according to one of India’s leading business dailies, The Economic Times. Hero Future Energies, which has an operational renewable energy capacity of 260 MW across 10 states in India, is planning to expand this portfolio to 1 GW over the next few years, and is also looking to divest equity stakes to raise funds.
The company has been actively participating in solar power auctions under the policies and programmes of various states. Recently, the company secured a bid to develop a 38 MW solar PV project in the state of Madhya Pradesh. The bid was secured at ₹5.641/kWh ($0.09/kWh) in the auction that yielded the lowest-ever bid for a solar power project. The company is required to commission the project next year.
Several Indian companies are looking to diversify into the renewable energy sector to a) meet the corporate sustainability responsibility, b) reap the tax incentives, and c) develop captive power generation capacities with minimal government or bureaucratic interventions.
Hero Future Energies has pledged to add 5.15 GW of renewable energy capacity over the next 5-7 years. This includes 2.85 GW of solar power capacity and 2.3 GW of wind energy capacity. While the company has not announced any small hydro power projects, it is believed to be evaluating some projects.
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