Japan's Sumitomo in $700m bid to enter Indian renewable energy market
Japanese conglomerate to join local player in JV to claim share of fast growing corporate PPA sector with wind and soll
Japan’s Sumitomo set its sights on the Indian renewable energy market by forming a joint venture with local developer AMPIN Energy that aims to sell green power to corporate buyers.
Sumitomo said the JV called AMPIN C&I Power, of which it will hold 49%, aims to sell power from 1GW of wind and solar to corporate buyers within the next few years.
The pair plan to invest about 100bn yen ($711m) in the venture.
Sumitomo aims to tap Japanese industrial players setting up operations in India, taking a share of an Indian corporate power purchase agreement (PPA) market it expects to grow to 100GW by 2030 from 12GW last year.
Sumitomo said: “The corporate PPA business in India has grown rapidly due to deregulation and the improvement of the business environment, such as opening up access to the power transmission and distribution network to businesses, and the country now has the third largest market size in the world after the United States and Spain.”
Seiji Kitajima, head of Sumitomo Corporation's Energy Innovation unit, said: "We recognise this as one of the largest corporate PPA projects in India by a Japanese company. We are pleased to collaborate with AMPIN Energy Transition, and through this collaboration we will strive to expand renewable energy-based power sources in India, which is experiencing rapid growth."
India’s renewable energy sector is set for steep growth thanks to stretching national targets, including goals to get 50% of power from clean sources by 2030 and to achieve net zero emissions by 2070.
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