Japanese conglomerate Sumitomo Corp said Friday it has created a joint venture with Indian renewable energy company AmpIn Energy Transition as part of its efforts to develop a green power platform business in the South Asian nation.
The JV, AMPIN C&I Power Pvt. Ltd, will supply energy from solar and wind to clients in India, Sumitomo said in a statement. Sumitomo holds 49% in the JV while the Indian partner holds the rest.
Together, the two partners will invest about 100 billion yen ($710 million or nearly Rs 6,000 crore) and will develop solar and wind projects in the country.
Sumitomo said that the JV will target a capacity of 1GW over the next few years and that it plans to further expand its investments into the Indian green energy market as demand for solar power increases.
The investment comes as 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 power purchase agreement (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. It is now the world's third-largest market after the United States and Spain. The corporate PPA market is projected to expand from 12 GW in 2023 to 100 GW by 2030, Sumitomo noted.
This is, however, not the first time that the Sumitomo group has invested in AmpIn Energy. In June last year, Sumitomo Mitsui Banking Corp, Asian Infrastructure Investment Bank and private equity firm Intermediate Capital Group committed to invest up to $250 million in Amp Energy, which was later renamed AmpIn Energy.
Sumitomo said Friday that the new JV will leverage AmpIn Energy's 4GW portfolio, which includes planned projects. It also said the new JV will look to acquire new customers, which will comprise "primarily Japanese-affiliated commercial and industrial companies operating in India."
Sumitomo also said its green power platform business in India will encompass the entire value chain from renewable energy generation to direct supply to client companies. The platform begins with the introduction of distributed renewable energy and aims to transform grid power to renewable energy, introduce storage batteries and electric vehicles, and establish renewable energy as a primary power source by linking these initiatives through digital transformation, it said.
The New Delhi-based AmpIn has raised $600 million since it was founded in 2016. It counts among its investors Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC as well as CBRE Caledon Capital Management Inc.
It is led by founder and chief executive officer Pinaki Bhattacharya. The company has a portfolio of industrial as well as utility customers across sectors such as pharmaceuticals, automobiles, cement, steel, heavy engineering, infrastructure, FMCG, educational institutions, IT and data centres, utilities and government bodies.
