New Delhi [India], September 15 : Japan-headquartered multinational trading company Sumitomo Corporation has partnered with Indian renewable energy company AMPIN Energy Transition Private Limited to establish a holding company AMPIN C&I Power Private Limited.
To be headquartered in New Delhi, the company will develop renewable energy power sources and promote a corporate Power Purchase Agreement (PPA) business supplying power derived from renewable sources such as solar and wind to client companies in India.
As per a company statement, with a total project cost of approximately 100 billion yen, this marks Sumitomo Corporation's first entry into India's corporate PPA market, with plans for further expansion.
India's corporate PPA market is growing rapidly due to regulatory relaxation, such as open access to transmission and distribution networks for operators, and improvements in the business environment.
Demand for solar power is particularly high among client companies seeking renewable energy due to India's vast land area, abundant sunlight, and low equipment installation costs, which help keep generation prices down.
The Sumitomo Corporation Group said it is developing a green power platform business in India that encompasses the entire value chain from renewable energy generation to direct supply to client companies.
The new company will leverage the local expertise of its Indian partner, AMPIN Energy Transition, which has a renewable energy portfolio of 4 GW including planned projects, and the network of Japanese companies Sumitomo Corporation has cultivated through its global operations.
By focusing on acquiring new customers, primarily Japanese-affiliated commercial and industrial companies operating in India, the company aims to supply 1 GW of power to the industry within the next few years.
"As Sumitomo Corporation's first project supplying renewable energy-derived power to client companies in India, this venture will help meet the country's rapidly growing energy demand driven by population and economic growth," the Japanese multinational company said in a statement.
Seiji Kitajima, General Manager, the Energy Innovation Initiative Strategic Business Unit of Sumitomo Corporation, with a total project cost of around 100 billion yen, 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," said Kitajima.
Pinaki Bhattacharya, Founder, MD and CEO of AMPIN Energy Transition, "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."
At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030.
India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources, are seen as an avenue to reduce the dependence on conventional sources of power. Green energy for climate mitigation is not just a focus area for India, but globally it has gained momentum.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor