Sumitomo Corporation, headquartered in Tokyo, and the renewable energy developer
AMPIN Energy Transition Pvt Ltd, based in New Delhi, have established a holding company — AMPIN C&I Power Pvt Ltd. The aim of the new company, which is also headquartered in New Delhi, is to 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.
With a total project cost of around $680 million, this marks Sumitomo Corporation’s first entry into India’s corporate PPA market; and there are plans for further expansion. The Indian government aims to achieve ‘net zero’ greenhouse gas emissions by 2070, with a target of 50% of power generation from renewable energy sources by 2030. 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.
Indeed, India is now the world’s third-largest market in this sector, after the USA and Spain. The corporate PPA market is projected to expand from 12GW in 2023 to 100GW by 2030. 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.
Seiji Kitajima, Sumitomo Corporation’s general manager of the energy innovation initiative strategic business unit, said: “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.”
Pinaki Bhattacharya, AMPIN Energy Transition’s founder, managing director and CEO, concluded: “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.”