The hybrid project, which is in an advanced stage, will be located in the south-western Indian state of Karnataka and aims to provide round-the-clock electricity primarily to government-owned utility SJVN Limited through a 25-year power purchase agreement (PPA). The surplus electricity generated will be sold on the power exchange market, according to the Japanese trading company.

Through the investment, Sumitomo will acquire a 49% stake in Clean Solar Power (Baniyana), the company undertaking the hybrid renewable energy project. The remaining share of the company will be owned by a subsidiary of Hero Future Energies (HFE).

The commercial operation date for the hybrid renewable energy project is planned for March 2027.

Jun Minase, general manager of the overseas energy solution strategic business unit at Sumitomo Corporation said: “We are very pleased to collaborate with Hero Future Energies. We see significant potential in HFE’s clearly defined growth ambitions, particularly as the share of renewable energy continues to grow rapidly within India’s energy mix. Through this partnership, we will strengthen our renewable energy business platform in India while pursuing new business opportunities that support the stable supply of renewable energy.”

Hybrid renewables-plus-storage projects have been increasingly more popular in India and have been linked to new procurement mechanisms, including firm and dispatchable renewable energy (FDRE), round-the-clock (RTC) and peak-power supply tenders. Earlier this year, Shubham Kumar Prajapati, general manager at Indian software engineering and consulting firm 1E9 Advisors and director at BatteryOS, spoke w i th PV Tech Premium (subscription required) about the Indian renewables market evolution and how dispatchability is becoming the defining metric for a project’s viability.

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