Sumitomo Acquires 49% of Hero Group’s 500 MWp Solar-Wind Project with Storage

The Japanese group takes a stake in Clean Solar Power (Baniyana), the company behind a Hero Future Energies project combining solar, wind and 200 MWh of batteries in Karnataka, with power sold to SJVN.

Sumitomo Corporation has agreed to invest in a renewable energy project combining solar and wind generation with a battery storage system, developed by Hero Future Energies (HFE), the renewable energy arm of India’s Hero Group. The project totals approximately 500 MWp of solar and wind capacity, along with 200 MWh of co-located storage. The Japanese group will acquire a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., the company undertaking the project. Other Indian operators are already developing storage, as shown by ACME Solar, which commissioned an additional 107.36 MW of battery storage in Rajasthan.

A project designed to deliver round-the-clock electricity

The project is located in the state of Karnataka, in southwestern India. According to Sumitomo Corporation, combining solar and wind power, which have different generation profiles, with battery storage is meant to offset fluctuations caused by weather conditions and the time of day. The stated aim is to provide electricity 24/7 using only renewable sources.

The electricity generated will be sold primarily 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. Because the contract requires a stable supply, particularly during morning and evening peak demand, energy management using battery storage will play an important role, the group says.

Rising power demand and grid constraints

Sumitomo Corporation expects electricity demand in India to keep growing, driven by population growth and economic expansion. The Indian government has set a target of raising non-fossil fuel-based power generation capacity to 500 GW by 2030 and is promoting the deployment of renewable energy.

The group notes that this rapid expansion has created new challenges, including fluctuations in power generation and the need to maintain grid stability. It says expectations are growing for projects that combine several renewable sources with storage. The agreement was signed in Delhi, in the presence of Tomonori Dairaku, Head of Overseas Energy Solution Unit No.1 (Asia) at Sumitomo Corporation, and Rahul Munjal, Founder and Chairman of Hero Future Energies.

More information:https://energynews.pro/en/sumitomo-acquires-49-of-hero-groups-500-mwp-solar-wind-project-with-storage