Sumitomo enters India's corporate renewable PPA market

Japanese trader Sumitomo Corp (TYO:8053) has established a partnership in India with local firm AMPIN Energy Transition Private Ltd to develop renewables and promote a corporate power purchase agreement (PPA) business in the country.

Named AMPIN C&I Power Private Ltd, the new holding company will offer solar and wind PPAs to commercial and industrial clients in India. It will leverage the local expertise of AMPIN Energy Transition, which has a 4-GW renewable energy portfolio, Sumitomo said today.

"With a total project cost of around JPY 100 billion [USD 702m/EUR 637m], we believe this is one of the largest corporate PPA projects undertaken by a Japanese company in India," commented Seiji Kitajima, general manager at the energy innovation initiative strategic business unit of Sumitomo.

The Japanese company will hold 49% of the new vehicle while AMPIN Energy Transition will have a controlling stake of 51%.

Initially, the partners will seek to supply 1 GW to industry customers in India within the next few years, primarily Japanese-affiliated commercial and industrial companies operating in the South Asian nation.

India's corporate PPA market is growing rapidly as the country is applying initiatives to achieve net-zero greenhouse gas emissions by 2070, with a target of 50% of power generation from renewable energy sources by 2030, Sumotomo noted.

(JPY 100.0 = USD 0.702/EUR 0.637)

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