Grapevine: Hero Future Energies in talks with KKR and others to sell PPAs

By Ankit Agarwal

  • 13 Oct 2020
Credit: Pixabay

Munjal family-promoted green energy company Hero Future Energies is in separate talks with global investors including KKR, Actis, Temasek-backed O2 Power and the UK’s CDC-owned Ayana Renewable Power to sell 900 megawatt (MW) of its power purchase agreements (PPAs), two people aware of the development told The Economic Times.

One PPA that Hero Future plans to sell was signed in 2018 for energy generated from a 250 MW solar project in Jodhpur, which was expected to be commissioned by this month. The 25-year PPA was signed quoting a tariff of Rs 2.53 a unit.

A fifth of Hero Future was acquired by UAE's sovereign wealth fund Mubadala Investment Company’s wholly owned Masdar Clean Energy last year for $150 million.

Previously, the company received $125 million in funding from World Bank’s International Finance Corporation (IFC) in 2017.

A number of cash-strapped power producers have started terminating or selling PPAs that they won in auctions held by the Solar Energy Corporation of India (SECI) citing force majeure events such as Covid-19.