AMPIN Energy Collaborates with Sumitomo Corporation for Renewable Projects in India with approximately JPY 100 billion

New Delhi – 13^th Sep, 2024 – Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Ueno Shingo) has established AMPIN C&I Power Private Limited (Head Office: New Delhi, India), in cooperation with AMPIN Energy Transition Private Limited (Head Office: New Delhi, India; CEO: Pinaki Bhattacharyya; hereinafter, “AMPIN”), a leading renewable energy transition company in India, for the purpose of developing renewable energy sources in India and promoting a corporate PPA business to supply electricity derived from renewable energy to client companies. The total project cost is approximately 100 billion yen with the potential to expand development, and through this collaboration, Together with the investment by AMPIN, this will create a 1 GW portfolio of renewable energy assets with Corporate PPAs. The JV will be owned 51% by AMPIN and 49% by Sumitomo. The allocated funds will be used for the development, construction, and operation of State Transmission Utility (STU) connected projects providing renewable energy to Commercial & Industrial (C&I) consumers.

Status of the Indian renewable energy market

The Indian government aims to achieve zero greenhouse gas (GHG) emissions by 2070 and has set a goal of generating 500 GW of power from non-fossil fuels by 2030. Of these, the corporate PPA business has grown rapidly due to changes of relevant regulation and incentives, and is now the third largest market in the world after the United States and Spain. The market is expected to expand 100GW in 2030 from 12GW as of 2023.

In India, the unit price of electricity generated from renewable energy sources is lower than the unit price of grid electricity. Demand for solar power in particular is growing from corporate clients as the unit price of electricity generated is low due to geographical factors such as India’s vast realm and abundant solar radiation, as well as low costs for equipment installation, labor costs, and management fees.

Target of the new company and future plans

In India, which has a large market size and promising future prospects, the Sumitomo Corporation Group will promote the development of a green power platform business that will cover the entire value chain, from renewable energy generation to direct supply to client companies. The new company will focus on expanding its business by leveraging the Indian knowledge of its local partner, AMPIN Energy Transition, and the network of Japanese companies that Sumitomo Corporation has cultivated through its business in various countries around the world. This project will be the first time that Sumitomo Corporation will supply electricity derived from renewable energy sources to corporate clients in India, and the company aims to supply 1 GW of electricity over the next few years.

Mr. Pinaki Bhattacharyya, Founder, MD & CEO of AMPIN Energy Transition, remarked, “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.”

Mr. Seiji Kitajima, Executive Officer and General Manager of the Energy Innovation Initiative at Sumitomo Corporation, added, “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.”

About AMPIN Energy Transition

AMPIN Energy Transition is India’s leading renewable energy transition company with a total portfolio of ~4 GWp spread across 21 states in the country. Headquartered in New Delhi with regional offices in Mumbai, Bangalore & Kolkata, AMPIN is run by an industry leading team of professionals and backed by leading institutional investors from Europe, Asia and North America. AMPIN has a balanced portfolio C&I and utility customers, providing complete renewable energy transition solutions while reducing their operating costs. It has marquee customers across 10 diverse sectors such as Pharmaceuticals, Automobiles, Cement, Steel, Heavy Engineering, Infrastructure, FMCG, Educational Institutions, IT & Datacentres, Utilities and Government bodies. To date, AMPIN Energy Transition has successfully raised approximately $600 million of equity from various investors. For further information please visit, https://ampin.energy/.

About Sumitomo Corporation

Sumitomo Corporation (TYO: 8053) is an integrated trading company with a strong global network comprising 128 offices in 66 countries and regions. The Sumitomo Corporation Group consists of approximately 900 companies and 80,000 employees on a consolidated basis. The Group’s business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of “Enriching lives and the world,” based on Sumitomo’s business philosophy passed down for over 400 years.

Signing ceremony photo

Business Scheme