Sumitomo Corporation has announced the formation of a joint venture with India’s AMPIN Energy Transition Private Limited, to develop renewable energy sources and expand the corporate Power Purchase Agreement (PPA) business in India. The new entity, AMPIN C&I Power Private Limited, will focus on supplying electricity generated from renewable sources to commercial and industrial clients.
The total project cost is estimated at approximately 100 billion yen. Through this collaboration, the venture aims to build a portfolio of 1 GW of renewable energy assets. AMPIN will own a 51% stake in the joint venture, with Sumitomo holding the remaining 49%. Funds will be directed toward the development, construction, and operation of projects connected to State Transmission Utilities (STUs), providing renewable energy to India’s commercial and industrial sectors.
Indian Renewable Energy Market Outlook
India’s renewable energy market is rapidly expanding, driven by the government’s goal to achieve net-zero greenhouse gas emissions by 2070 and generate 500 GW of power from non-fossil fuels by 2030. The corporate PPA market, in particular, has seen significant growth due to regulatory changes and incentives, positioning India as the third-largest market globally, behind the U.S. and Spain. The market is projected to grow from 12 GW in 2023 to 100 GW by 2030.
Solar energy demand is rising among corporate clients due to lower costs compared to grid electricity. India’s vast geographical landscape and abundant solar radiation, combined with relatively low labor and equipment costs, make solar power an attractive option for businesses.
Goals and Future Plans
The new company will develop a green power platform that spans the entire value chain, from energy generation to direct supply. Sumitomo Corporation aims to leverage AMPIN’s local expertise in India and its global network of Japanese companies to achieve its goal of supplying 1 GW of renewable energy over the next few years. This marks the first time Sumitomo will supply renewable energy directly to corporate clients in India.
AMPIN Energy Transition’s CEO, Pinaki Bhattacharyya, emphasized the importance of the collaboration: “This partnership underscores our commitment to accelerating renewable energy adoption in India. By joining forces, we aim to develop and co-own renewable projects that will deliver long-term returns and contribute to India’s energy transition.”
Seiji Kitajima, Executive Officer at Sumitomo Corporation, highlighted the significance of the venture, stating, “With a project cost of around 100 billion yen, this is one of the largest corporate PPA projects led by a Japanese company in India. We are excited to collaborate with AMPIN and are committed to expanding renewable power sources in India’s fast-growing market.”
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