Hero Future Energies Signs Sumitomo Corporation as 49% Partner in 500 MWp Karnataka Renewable Project

A signing ceremony held in Delhi formalized a new equity partnership between Sumitomo Corporation and Hero Future Energies, the renewable energy arm of India's Hero Group. Under the agreement, Sumitomo Corporation, headquartered in Chiyoda-ku, Tokyo, will take a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., the entity developing a hybrid renewable project in southwestern India. Hero Solar Energy Pvt. Ltd., a wholly owned subsidiary of HFE, retains the remaining 51%.

The ceremony was attended by Tomonori Dairaku, Head of Overseas Energy Solution Unit No.1 (Asia) at Sumitomo Corporation, and Rahul Munjal, Founder and Chairman of Hero Future Energies. The announcement was made through Sumitomo Corporation's Asia Oceania division and falls under the company's Energy Transformation Business Group.

Round-the-Clock Supply Through Mixed Generation

The asset in question is located in the Bidar District of Karnataka and pairs roughly 500 MWp of combined solar and wind generation with a co-located 200 MWh battery energy storage system. Sumitomo Corporation describes the undertaking as an advanced one, aimed at delivering electricity around the clock using renewable sources alone.

The logic of the configuration rests on the differing generation profiles of solar and wind. By combining the two sources with battery storage, fluctuations caused by weather conditions and the time of day are expected to be offset, allowing a continuous supply of electricity. Sumitomo says advanced energy management using the battery storage plays an important role, particularly given the requirements of the project's power purchase agreement.

25-Year Sale to Government-Owned SJVN

Offtake is anchored by a 25-year Power Purchase Agreement with SJVN Limited, an Indian government-owned power company, which will buy the majority of the electricity generated. A portion of surplus power will also be sold on the power exchange market.

The PPA requires a stable supply of electricity, especially during morning and evening periods of peak demand, and it is this obligation that makes the battery storage component central to meeting the contract terms. The project's scheduled commercial operation date is set for March 2027.

Why Sumitomo Is Expanding in India

For Sumitomo Corporation, the deal extends a renewable energy track record built in Japan and internationally, covering the development and operation of power generation projects. Through group companies, the trading house also operates energy management businesses, including energy aggregation and battery storage control.

Participation in the Karnataka project is intended to sharpen its expertise in integrated energy management that combines multiple renewable sources with battery storage, knowledge Sumitomo plans to deploy across Asian and other markets where demand is rising for solutions to grid-related challenges stemming from growing renewable deployment. Jun Minase, General Manager of the Overseas Energy Solution Strategic Business Unit at Sumitomo Corporation, said the company was very pleased to collaborate with Hero Future Energies.

He pointed to significant potential in HFE's clearly defined growth ambitions, noting that the share of renewable energy continues to grow rapidly within India's energy mix. Through the partnership, Sumitomo will strengthen its renewable energy business platform in India while pursuing new business opportunities supporting a stable supply of renewable energy.

HFE Positions the Deal as Proof of Execution

From Hero Future Energies' side, Rahul Munjal welcomed Sumitomo Corporation as a strategic partner and characterized the transaction as an endorsement of HFE's ability to execute complex renewable energy projects at scale. As India enters the next phase of its energy transition, he said, partnerships of this kind play a critical role in combining capital and execution excellence to accelerate clean energy adoption.

Indian Policy Backdrop Drives Hybrid Demand

The broader context is India's rising electricity consumption, which is expected to keep growing on the back of population growth and economic expansion. The Indian government has set a target of lifting non-fossil fuel-based power generation capacity to 500 GW by 2030 and is actively promoting renewable deployment.

At the same time, the rapid build-out of renewables has introduced challenges around generation fluctuations and grid stability, fueling expectations for projects that combine multiple sources with battery storage to deliver a continuous 24/7 supply.

Sumitomo Corporation says the project will contribute to both the further expansion of renewable energy and greater grid stability in India, and that it will continue working toward a decarbonized society and the development of a sustainable energy supply.