First Entry into India’s Corporate PPA Market with Total Project Cost of 100 Billion Yen
Sumitomo Corporation, a global trading and business investment company based in Tokyo, Japan, has made its first major foray into India’s renewable energy market by establishing a new company dedicated to corporate Power Purchase Agreements (PPA). The company, AMPIN C&I Power Private Limited, has been formed in partnership with New Delhi-based AMPIN Energy Transition Private Limited, a leading renewable energy developer in India. This joint venture aims to develop renewable energy power sources and promote corporate PPAs, which will provide clean energy from solar and wind sources to businesses across India.
With a total project cost of approximately 100 billion yen, this represents one of the largest corporate PPA initiatives undertaken by a Japanese firm in India. The collaboration with AMPIN Energy Transition marks a significant step in meeting India’s growing demand for renewable energy, while also advancing the country’s ambitious energy transition goals.
Stats on India’s Renewable Energy Market Growth
Currently, India’s renewable energy sector is experiencing rapid growth, driven by favourable government policies and a national target of 50% power generation from renewable sources by 2030. India is now the third-largest corporate PPA market globally, after the United States and Spain. As companies increasingly seek to secure reliable and clean energy sources, the country’s corporate PPA market is expected to grow from 12 GW in 2023 to 100 GW by 2030, with solar energy being particularly in demand due to India’s abundant sunlight and low installation costs.
Business Strategy and Future Plans
AMPIN C&I Power Private Limited will focus on supplying 1 GW of renewable energy to commercial and industrial customers over the next few years. The new company will benefit from the local expertise of AMPIN Energy Transition, which has a 4 GW renewable energy portfolio, and Sumitomo Corporation’s global network of Japanese companies operating in India. Initially, the joint venture will target Japanese-affiliated businesses in India, helping them meet their sustainability goals by securing renewable energy supply at competitive rates.
Sumitomo Corporation’s green power platform, which covers the entire value chain from energy generation to distribution, will play a crucial role in this initiative. Seiji Kitajima, General Manager of the Energy Innovation Initiative Strategic Business Unit at Sumitomo Corporation, commented, “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.”
Commitment to Sustainability
Sumitomo Corporation’s long-term vision is to achieve carbon neutrality by 2050, focusing on renewable energy expansion, fuel conversion, and CO2 capture technologies. By 2030, the company plans to supply more than 5 GW of renewable energy globally, with the India venture being a key milestone in that journey. Additionally, Sumitomo has successfully implemented corporate PPA projects in Japan and the U.S., securing over 70 MW in renewable energy contracts.
Pinaki Bhattacharyya, CEO of AMPIN Energy Transition, expressed his optimism about the joint venture, stating, “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.”
Since, India continues its drive toward a sustainable energy future, this partnership between Sumitomo Corporation and AMPIN Energy Transition is poised to make a lasting impact on the country’s renewable energy landscape
