New Delhi, October 5: Japan’s Sumitomo Corporation has agreed to invest in a large-scale renewable energy project being developed by Hero Future Energies (HFE), the renewable energy arm of India’s Hero Group. As part of the deal, Sumitomo Corporation will acquire a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., the company undertaking the project in Karnataka.
The project will combine around 500 MWp of solar and wind power generation capacity with a 200 MWh battery energy storage system. It aims to provide electricity around the clock using renewable energy. The combination of solar and wind generation, which have different generation patterns, with battery storage is expected to help manage fluctuations caused by weather conditions and the time of day, allowing for a more continuous power supply.
Electricity generated by the project will primarily be sold to SJVN Limited, an Indian government-owned power company, under a 25-year Power Purchase Agreement (PPA). Some surplus electricity will be sold on the power exchange market. The PPA requires a stable supply of electricity, particularly during peak demand periods in the morning and evening. Battery storage and advanced energy management will therefore play an important role in meeting the project’s requirements.
Jun Minase, General Manager of Sumitomo Corporation’s Overseas Energy Solution Strategic Business Unit, said the company was pleased to collaborate with HFE and saw significant potential in its growth plans as renewable energy’s share in India’s energy mix continues to rise.
Hero Future Energies Founder and Chairman Rahul Munjal said Sumitomo’s participation as a strategic partner was an endorsement of HFE’s ability to execute large-scale renewable energy projects. He added that partnerships such as this would help bring together capital and execution capabilities as India moves into the next phase of its energy transition and expands the adoption of clean energy.
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