Hero Future Energies with $2 billion add-on

NEW DELHI: Hero Future Energies, the renewable energy arm of Munjal family-promoted Hero Group, will invest over $2 billion over the next 30 months to expand its generating capacity, focusing on energy storage projects to capitalize on the sharp decline in battery prices, the company’s CEO Srivatsan Iyer told TOI.

“We currently have an operational capacity of 1.8 gigawatts (GW). We got here after about 12 years. We will be implementing projects with a total capacity of 2.6 GW over the next two and a half years as we feel it is time for the company to spread its wings,” Iyer said.

Increase

A large part of the projects being prepared include battery energy storage systems and were won in auctions conducted by SECI (formerly Solar Energy Corporation of India), the state agency tasked with implementing the National Solar mission. “We want to focus on integrating multiple technologies such as solar, wind and energy storage, rather than projects using only solar or wind energy,” he said, adding that the company also plans to enter the green hydrogen market.

The strain on the energy storage system to provide peak power or 24/7 power is understandable as prices for a standard 20-meter lithium-ion battery pack have more than halved from $270 per kilowatt-hour in 2022 to $130 today. Iyer hopes prices will continue to decline, especially with the emergence of new technologies such as sodium-ion and aluminum-air. The question is how much more,” he said.

The company is in a “comfortable” position to fund these projects and has no immediate plans to raise funds, Iyer said, adding: “We can raise funds if and when the need arises.” In September 2022, KKR invested $450 million through the Asia-Pacific Infrastructure Fund.

The company is also expanding its reach abroad, with projects that have been launched or are underway in Bangladesh, Vietnam, the UK and Ukraine.