Sumitomo to increase India renewable investment to $1.3B

Sumitomo Corp. plans to sharply expand its presence in India’s fast-growing renewable energy sector, doubling its initial investment commitment to a total of ¥200 billion ($1.28 billion) as demand for clean electricity surges among industrial users.

The Japanese trading house will deploy the funds through its joint venture with Indian startup Ampin Energy Transition.

Joint venture targets 2 GW of capacity by 2027–28

The expanded investment will support the development of more than 2 gigawatts of renewable power capacity by fiscal 2027, or by March 2028 as stated separately by a Sumitomo spokesperson.

The projects span solar and wind installations across more than 10 Indian states, with solar operations already underway in Haryana and Karnataka.

Financial institutions are expected to participate in the funding structure, complementing the equity held through the joint venture.

Sumitomo owns 49% of AMPIN C&I Power Private Limited, with Ampin Energy Transition holding the remainder.

The company’s strategy is directly linked to the rapid expansion of India’s corporate power purchase agreement (PPA) market, which grew to 12 gigawatts in 2023.

Sumitomo forecasts that the market will rise to 100 gigawatts by 2030 as companies seek cleaner and more stable energy supplies amid rising sustainability commitments.

Japanese firms in India drive early power demand

Power generated by the joint venture’s projects will be supplied directly to factories and offices operated by Japanese companies in India.

Sumitomo has so far secured around 10 PPAs with Japanese corporates, many of them manufacturers, including automakers.

These companies increasingly view reliable electricity supply as a major operational challenge, with renewable energy offering both cost competitiveness and decarbonization benefits.

“We seek to meet the demand for more green and competitive electricity and become the largest Japanese power generation company in India,” said Takahiro Jitosho, chairman and managing director of Sumitomo Corp. India.

The renewable facilities are expected to deliver long-term stability for corporate customers, as India continues to deregulate grid access and support private participation in power supply.

PPAs have emerged as a preferred mechanism for companies looking to manage energy costs while lowering emissions.

India’s net-zero push creates new market opportunities

India aims to achieve net-zero greenhouse gas emissions by 2070, a target that will require significant acceleration of renewable capacity additions.

The country currently relies on fossil fuels for about three-quarters of its power generation, underscoring the scale of transition required.

For Sumitomo, the investment expansion reflects both confidence in India’s regulatory framework for renewables and the broader corporate shift toward clean energy procurement.

The joint venture’s pipeline positions the company to benefit from rising industrial electricity demand as global supply chains diversify and manufacturing capacity in India expands.

The Japanese trading house’s increased commitment signals sustained foreign investor appetite for renewable infrastructure in India, driven by long-term growth prospects and expanding corporate uptake.

As Sumitomo scales its portfolio, it aims to play a central role in supplying clean energy to multinational companies operating in one of the world’s fastest-growing power markets.