Sumitomo Corporation has established AMPIN C&I Power Pvt Ltd, in cooperation with AMPIN Energy Transition Pvt Ltd, for the purpose of developing renewable energy sources in India and promoting a corporate PPA business to supply electricity derived from renewable energy to client companies.
The total project cost is approximately 100 billion yen. 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 per cent 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 providing renewable energy to Commercial & Industrial (C&I) consumers.
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.
Corporate PPA business
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 100 GW in 2030 from 12 GW as of 2023.
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.