Sumitomo Corporation has entered a JV partnership with India’s AMPIN Energy Transition
Their targets for a total project cost of JPY 100 billion are the corporates in India
The focus is on supplying renewable energy to the C&I segment, including Japanese-affiliated companies in India
Japanese trading group Sumitomo Corporation has announced its entry into the Indian renewable energy market via a partnership with Indian renewables developer AMPIN Energy Transition. Their joint venture (JV) targets corporate India as the target audience with a total project cost of close to JPY 100 billion ($712 million).
The JV AMPIN C&I Power Private Limited will promote the corporate power purchase agreement (PPA) business supplying power from solar and wind among other renewable energy sources to the commercial and industrial (C&I) segment. It will supply power to the grid from where its PPA clients will source their clean electricity.
It will target to supply 1 GW of renewable energy to the industrial segment over the next few years.
With AMPIN and Sumitomo as its 51% and 49% shareholders, respectively, the New Delhi-headquartered JV sees India as a big corporate PPA market, saying it is projected to expand from 12 GW in 2023 to 100 GW by 2030.
Sumitomo said the group is developing a green power platform business in India that encompasses the entire value chain from renewable energy generation to direct supply to client companies. The JV will focus on acquiring new customers, primarily Japanese-affiliated companies operating in India’s C&I segment.
For this, AMPIN will leverage its local expertise, its 4 GW renewable energy portfolio, and other planned projects.
“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,” said AMPIN Energy Transition Founder, MD & CEO Pinaki Bhattacharya.
AMPIN Energy Transition is backed by investors such as Copenhagen Infrastructure Partners (CIP), Sumitomo Mitsui Banking Corporation (SMBC), and the Asian Infrastructure Investment Bank (AIIB), among others. It is also developing a solar cell and module manufacturing facility with up to 1.3 GW annual capacity in Odisha, in partnership with Jupiter International.