Hero Future Energies (HFE), the renewable energy arm of the Hero Group, announced that Japan's trading and investment company Sumitomo Corporation will acquire a 49 per cent stake in its special purpose vehicle developing a 500 megawatt wind and solar project with large-scale battery energy storage in Karnataka. According to reports from Business Standard, HFE did not disclose the value of the deal but confirmed it will retain the remaining 51 per cent stake in the project. Nomura served as the financial advisor to Hero Future Energies in connection with the transaction, highlighting the strategic importance of this partnership. The project is specifically located at Bidar district, Karnataka, positioning it in one of India's key renewable energy hubs. As per Rediff Moneynews, the partnership aims to accelerate India's clean energy adoption and strengthen Sumitomo's RE business platform in the region.
The latest details reveal that Sumitomo Corporation will acquire a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., the company developing the project, while Hero Solar Energy Pvt. Ltd., a wholly owned subsidiary of HFE, will retain the remaining 51% stake. The project represents a significant advancement in integrated renewable energy technology, featuring combined solar and wind generation with a co-located 200 MWh battery energy storage system. As reported by Business Standard, this integration aims to reduce fluctuations associated with weather conditions and the time of day while improving the availability of renewable power. The battery storage system will play a key role in managing variations in renewable generation and supporting the project's ability to deliver electricity during periods of high demand, with commercial operation targeted for March 2027. According to Rediff Moneynews, Jun Minase, General Manager, Overseas Energy Solution SBU of Sumitomo Corporation stated that through this partnership, the company will pursue new business opportunities that support the stable supply of renewable energy.
The partnership comes as Sumitomo Corporation has announced plans to deploy approximately USD 1.3 billion in India's renewable energy sector through a joint venture with domestic clean energy developer AMPIN Energy Transition. According to Business Standard, under this expanded partnership, the companies aim to develop 2 GW renewable projects by the end of the financial year ending March 2028. This builds on Sumitomo's existing India presence, including a joint venture with TruAlt Bioenergy for compressed biogas plants in Maharashtra and Karnataka. SMBC, part of Sumitomo Mitsui Financial Group, has also partnered with AMPIN Energy Transition to establish AMPIN C&I Power as a 49:51 joint venture, targeting approximately ¥100 billion in planned projects with an initial goal of developing 1 GW of renewable energy capacity for corporate customers.
The partnership reflects India's renewable energy sector attracting increasing interest from global strategic and institutional investors, supported by the country's growing focus on clean technology and energy requirements. As reported by Business Standard, HFE Founder & Chairman Rahul Munjal emphasized that partnerships such as this will play a critical role in bringing together capital and execution excellence to accelerate all-round adoption of clean energy as India enters the next phase of its energy transition. Jun Minase, General Manager, Overseas Energy Solution SBU of Sumitomo Corporation reinforced this strategic importance, stating that through this partnership, the company will strengthen its Renewable Energy business platform in India while pursuing new business opportunities. The emergence of deeper pools of long-term capital is also creating a stronger foundation for the next phase of growth in India's renewable energy market.
HFE, backed by global investors including the International Finance Corporation (IFC) and KKR, maintains a portfolio of 7.7 gigawatts of renewable energy assets and 2.9 gigawatt-hours of battery energy storage capacity across India, Ukraine, Vietnam and the UK. As reported by Business Standard, the company's portfolio includes advanced solutions such as hybrid power, peak power, firm and dispatchable renewable energy (FDRE) and emerging technologies including energy storage and green hydrogen, extending beyond conventional wind and solar PV assets. The company, established in 2012 with the philosophy of 'Profit for Purpose', aims to contribute towards preserving the environment for future generations. With this Karnataka project expected to demonstrate how solar, wind and battery storage can be integrated into a single power-generation system to provide a more stable renewable electricity supply, HFE is developing renewable energy projects in India and seeking to expand its clean-energy portfolio as the country's power demand and renewable energy requirements increase.
