AMPIN Energy Partners with Sumitomo Corporation for Renewable Projects in India
The total project cost is approximately 100 billion yen with the potential to expand development, and through this collaboration, Together with the investment by AMPIN, this will create a 1 GW portfolio of renewable energy assets with Corporate PPAs. The JV will be owned 51 percent by AMPIN and 49 percent by Sumitomo.
September 13, 2024. By News Bureau
The total project cost is approximately 100 billion yen with the potential to expand development, and through this collaboration, Together with the investment by AMPIN, this will create a 1 GW portfolio of renewable energy assets with Corporate PPAs. The JV will be owned 51 percent by AMPIN and 49 percent by Sumitomo. The allocated funds will be used for the development, construction, and operation of State Transmission Utility (STU) connected projects providing renewable energy to Commercial & Industrial (C&I) consumers.
The Indian government aims to achieve zero greenhouse gas (GHG) emissions by 2070 and has set a goal of generating 500 GW of power from non-fossil fuels by 2030. Of these, the corporate PPA business has grown rapidly due to changes of relevant regulation and incentives, and is now the third largest market in the world after the United States and Spain. The market is expected to expand 100GW in 2030 from 12GW as of 2023.
In India, the unit price of electricity generated from renewable energy sources is lower than the unit price of grid electricity. Demand for solar power in particular is growing from corporate clients as the unit price of electricity generated is low due to geographical factors such as India's vast realm and abundant solar radiation, as well as low costs for equipment installation, labor costs, and management fees.
In India, which has a large market size and promising future prospects, the Sumitomo Corporation Group will promote the development of a green power platform business that will cover the entire value chain, from renewable energy generation to direct supply to client companies. The new company will focus on expanding its business by leveraging the Indian knowledge of its local partner, AMPIN Energy Transition, and the network of Japanese companies that Sumitomo Corporation has cultivated through its business in various countries around the world.
This project will be the first time that Sumitomo Corporation will supply electricity derived from renewable energy sources to corporate clients in India, and the company aims to supply 1 GW of electricity over the next few years.
Pinaki Bhattacharyya, Founder, MD & CEO of AMPIN Energy Transition, remarked, “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."
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, 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 in rapidly growing India."
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