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Hero Future Energies Plans to Sell 900 MW PPAs

Hero Future Energies is planning to sell 900 MW of its power purchase agreements (PPAs).

 

The company has started talks with investors such as KKR, Actis,Temasek-backed O2 Power and the UK’s CDC-owned Ayana Renewable Power.

 

HSBC is advising Hero Future Energies on the PPAs as well as other fund-raising options.

 

One PPA that the company plans to sell was signed in 2018 for energy generated from 250 MW solar project in Jodhpur, Rajasthan, which was expected to be commissioned by October 2020.

 

The 25 year PPA was signed quoting a tariff of Rs 2.53 a unit. The company has 1.3 GW of installed renewable energy capacity and another 1.5 GW under construction in both domestic and overseas markets.

 

Hero Future Energies is backed by Mubadala Investment Company, the UAE sovereign wealth fund, which acquired 20 percent for USD 150 million in November 2020, and the International Finance Corporation, a wing of the World Bank that invested USD 125 million in the company in 2017.

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