Sumitomo Corporation has agreed to invest in a large-scale renewable energy project developed by Hero Future Energies (HFE), combining around 500 MWp of solar and wind capacity with a 200 MWh battery energy storage system (BESS) in Karnataka, India.
The Japanese trading and investment group will acquire a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., the project company undertaking the development. Hero Solar Energy Pvt. Ltd., part of the Hero Group’s renewable energy business, will retain the remaining 51%.
Located in Bidar district, Karnataka, the project is designed to combine different renewable generation profiles with battery storage to support a more continuous electricity supply. Commercial operation is currently scheduled for March 2027.
Solar, Wind and Battery Storage Combined
The project will comprise approximately 500 MWp of combined solar and wind generation capacity, supported by a 200 MWh battery energy storage system.
Solar and wind generation typically follow different production patterns. According to the project developers, combining the two technologies with battery storage is intended to help manage fluctuations associated with weather conditions and variations in electricity generation throughout the day.
Battery storage will have a particularly important role in meeting the project’s supply requirements during periods of higher demand. The project is expected to use energy management systems to shift and manage stored electricity, including during the morning and evening peak periods.
The configuration is intended to support the project’s objective of providing renewable electricity on a 24/7 basis, rather than relying on a single intermittent generation source.
SJVN to Purchase Power Under 25-Year PPA
Electricity generated by the project will primarily be supplied to SJVN Limited, an Indian government-owned power company, under a 25-year Power Purchase Agreement (PPA).
Any surplus electricity is expected to be sold through the power exchange market.
The long-term PPA provides an offtake framework for the project while also placing greater importance on the ability to manage generation and supply across different periods of the day. This is where the combination of solar, wind and battery storage becomes central to the project’s operating model.
The project company will be owned 51% by Hero Solar Energy Pvt. Ltd. and 49% by Sumitomo Corporation.
India’s Growing Requirement for Dispatchable Renewable Power
India is expanding renewable generation while electricity demand continues to increase alongside population growth and economic activity.
The Indian government has set a target of 500 GW of non-fossil fuel-based power generation capacity by 2030. As renewable capacity expands, however, managing variable generation and maintaining grid stability are becoming increasingly important considerations for the power sector.
Projects that combine multiple renewable technologies with energy storage are one approach to addressing these challenges. Solar generation can be complemented by wind generation, while batteries can be used to manage the timing of electricity delivery.
For projects operating under supply arrangements that require electricity during specific demand periods, this type of integrated configuration can be particularly relevant.
Sumitomo Expands Renewable Energy and Storage Platform in India
The investment will also give Sumitomo Corporation an opportunity to deepen its renewable energy presence in India.
The company said it has experience in developing and operating renewable power projects in Japan and overseas. Through its group companies, it is also involved in energy management activities, including energy aggregation and battery storage control.
Jun Minase, General Manager of the Overseas Energy Solution Strategic Business Unit at Sumitomo Corporation, said the partnership with HFE would strengthen the company’s renewable energy business platform in India while supporting further business opportunities linked to the stable supply of renewable electricity.
Hero Future Energies founder and chairman Rahul Munjal said the partnership brings together capital and project execution capabilities as India enters what he described as the next phase of its energy transition.
Bioenergy Business Analysis
The Karnataka project highlights a broader shift in renewable power development from standalone generation assets towards integrated renewable energy systems that combine generation with storage. The combination of approximately 500 MWp of solar and wind capacity with 200 MWh of battery storage is particularly relevant because the project’s offtake arrangement requires electricity supply to be managed around periods of demand rather than simply maximising generation when renewable resources are available.
The investment also gives Sumitomo Corporation a direct interest in a project where energy management is central to the business model. For India’s rapidly expanding renewable power market, the ability to combine different generation profiles with storage could become increasingly important as the share of variable renewable electricity rises. The project’s planned March 2027 commercial operation will provide a future reference point for how such a configuration performs under a long-term power purchase arrangement.
