Abu Dhabi’s Masdar has announced strategic investment in Indian independent power producer (IPP) in the renewable energy space Hero Future Energies (HFE) for $150 million. Masdar’s interest in HFE was till now a market rumour, which has now been finally confirmed by the company, reported local media. Indian business news portal Mint wrote the investment gets Masdar close to 20% stake in the Indian company.

HFE develops projects using solar PV technology for both grid connected and rooftop solar segments along with wind power. According to the company statement, it plans to use this strategic investment to fund the expansion of its renewable energy portfolio in India and in selected international geographies but without sharing details.

On its website, HFE says it wants to explore opportunities in new technologies such as storage and hybrid projects among others for both domestic as well as overseas markets with its overarching aim to have a portfolio of 5 GW by 2022.

Backed by the International Finance Corporation (IFC), HFE’s current portfolio comprises 1.3 GW of wind and solar power assets with an additional 1.5 GW under construction or planned. It hopes for new international markets including Europe, the UK and Asia including Bangladesh, Singapore, Vietnam, Philippines and Indonesia to account for 25% of its growth.

For Masdar, the investment offers opportunity to collaborate in growing its market presence in India and to diversify its portfolio in terms of clean technologies. In October 2019, Uzbekistan and the IFC chose Masdar to develop a 100 MW solar power plant in the country after the latter won the project under first Scaling Solar tender with $0.027 per kWh winning bid (see Masdar Wins Scaling Solar Uzbekistan Auction).

Masdar’s investment in HFE comes close on the heels of other such investments made in the recent pasts in India as Shell’s 20% stake in rooftop solar PV firm Orb Energy in October 2019.