Japan-based Sumitomo has agreed to invest in a hybrid renewable energy development in India, partnering with Hero Future Energies (HFE), the clean energy arm of Hero Group.
Under the deal, Sumitomo will acquire a 49% stake in Clean Solar Power (Baniyana), the project vehicle behind the development in the southern Indian state of Karnataka.
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The project pairs solar and wind generation capacity of approximately 500MWp with a co-located 200MW-hour battery energy storage system (BESS).
The project aims to supply electricity around the clock by integrating different renewable energy sources with battery storage to smooth generation fluctuations from weather changes and the time of day.
Electricity produced from the facility is intended to be sold primarily to SJVN, an Indian Government-owned power company, under a 25-year power purchase agreement (PPA).
Under the terms of the agreement, the facility must deliver consistent power during peak morning and evening hours.
The battery storage will be used to manage supply and demand throughout the day.
HFE founder and chairman Rahul Munjal said: “We are delighted to welcome Sumitomo Corporation as a strategic partner in this project.
“This partnership is an endorsement of HFE’s capabilities to execute complex renewable energy projects at scale.
“As India enters the next phase of its energy transition, partnerships such as the one with Sumitomo will play a critical role in bringing together capital and execution excellence to accelerate all-round adoption of clean energy.”
The investment aligns with India’s national target of reaching 500GW of non-fossil fuel power generation capacity by 2030.
Sumitomo operates renewable energy and energy management businesses, including aggregation services and battery storage control, through its group companies.
Sumitomo overseas energy solution strategic business unit general manager Jun Minase said: “We are very pleased to collaborate with Hero Future Energies. We see significant potential in HFE’s clearly defined growth ambitions, particularly as the share of renewable energy continues to grow rapidly within India’s energy mix.”
In August, Sumitomo acquired a 33.3% equity stake in the Gwynt Glas Offshore Wind Farm, which is being developed by EDF power solutions UK and Ireland and the Electricity Supply Board in the Celtic Sea.
