UAE-based energy company Masdar has acquired an undisclosed stake in Indian renewable power producer Hero Future Energies (HFE).

The financial details of the acquisition have not been disclosed by the two parties.

Masdar’s stake acquisition follows $125m investment made by International Finance Corporation (IFC), a part of the World Bank in HEF in 2017.

The investment by Masdar is expected to fund the expansion of HEF renewable energy portfolio in India and other key growth markets.

HFE chairman and managing director Rahul Munjal said: “We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions.

“We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero Group to support HFE’s global expansion plan and our aspiration to be a premier global clean-tech company providing solutions to the enormous challenges posed by climate change”.

HFE aims to have 5GW installed and operating capacity by 2022

With a significant presence in India, HFE expects 25% of its future growth to come from new markets including Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.

Established in 2012, HFE currently has a 1.3GW portfolio of wind and solar power plants and an additional 1.5GW under construction or planned.

The company aims to have 5GW of installed and operating capacity by 2022.

Masdar CEO Mohamed Jameel Al Ramahi said: “As a global renewable energy leader active in more than 25 countries, and with HFE’s standing as one of India’s leading independent power producers specialising in onshore wind energy, PV power plants and rooftop solar, we see numerous opportunities to collaborate in growing our market presence and diversifying our portfolio in terms of clean technologies.”

Recently, Masdar signed a power purchase agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan to construct a 100MW solar plant in Uzbekistan.