Sumitomo to invest $710 million to build renewable energy projects in India
Tokyo-based Sumitomo Corporation will invest $710 million to build renewable energy (RE) projects in India, in collaboration with New Delhi-based AMPIN Energy Transition.
The two companies have formed a joint venture AMPIN C&I Power Private Ltd for the purpose.
The joint corporation will focus on green energy supply to commercial and industrial (C&I) customers, aiming to build a capacity of 1 Gw.
With this, Sumitomo Corporation will mark its entry into India to supply electricity from RE sources to corporate clients. Sumitomo is a global trading company with presence in metals and manufacturing.
“Together, with the investment by AMPIN, this will create a 1 Gw portfolio of renewable energy assets with corporate power purchase agreements (PPAs). The JV will be 51 per cent owned by AMPIN and 49 per cent by Sumitomo. The allocated funds will be used for the development, construction, and operation of state transmission utility (STU) connected projects. It will provide renewable energy to commercial & industrial (C&I) consumers,” the companies said in a joint statement.
Under the proposed partnership, the JV would firm up PPAs with C&I players for sale of green energy. It will sell the power to its transmission and distribution arm that will sell it to the customer.
Most of the existing players in the segment do not own or operate transmission networks and rely on the national grid for supply. Currently, only Sterlite Power’s sponsored Serentica has a similar arrangement, wherein it aims to utilise the transmission network of Sterlite.
“In India, which has a large market size and promising prospects, Sumitomo Corporation Group will promote the development of a green power platform business. It will cover the entire value chain, from renewable energy generation to direct supply to client companies,” said the statement.
Piinaki Bhattacharyya, founder, managing director (MD) & chief executive officer (CEO) of AMPIN Energy Transition, said, “This collaboration with Sumitomo Corporation highlights our unwavering commitment to accelerating renewable energy adoption in India. By combining our expertise and resources, we aim to co-develop and co-own renewable energy projects that will provide substantial long-term returns while significantly contributing to the nation’s energy transition goals.”
AMPIN currently has a portfolio of 4 Gw of RE assets.
Seiji Kitajima, executive officer and general manager of the energy innovation initiative at Sumitomo Corporation, added, “With a total project cost of around 100 billion yen ($710 million), we believe this is one of the largest corporate PPA projects undertaken by a Japanese company in India. We are delighted to collaborate with AMPIN Energy Transition and, through this partnership, will strive to expand renewable energy-based power sources rapidly in India.”
First Published: Sep 13 2024 | 7:18 PM IST