Sumitomo Corporation will acquire a 49 per cent stake in a Hero Future Energies special purpose vehicle developing a 500 MW wind and solar project with large-scale battery energy storage in Karnataka, in a deal that expands Japanese investment in India’s renewable-energy infrastructure. Hero Future Energies will retain the remaining 51 per cent stake.
Hero Future Energies, the renewable energy arm of the Hero Group, announced the transaction on October 5. The companies did not disclose the value of the investment. The project will combine wind generation, solar photovoltaic capacity and battery storage, although the announcement did not specify the individual capacity of each component or provide a construction and commissioning timeline.
The structure places battery storage alongside generation capacity rather than treating it as a separate addition to the power system. Wind and solar output can vary by time of day and weather conditions, while storage can be used to hold electricity and release it later. The announcement, however, did not state the project’s planned storage duration, operating model, power purchase arrangements or the grid connection point.
Rahul Munjal, founder and chairman of Hero Future Energies, said the partnership would bring together capital and execution expertise as India enters what he described as the next phase of its energy transition. He said such partnerships would support wider adoption of clean energy.
Jun Minase, general manager of the Overseas Energy Solution SBU at Sumitomo Corporation, said the company saw significant potential in Hero Future Energies’ growth ambitions as renewable energy’s share of India’s energy mix continues to increase. He said the partnership would strengthen Sumitomo’s renewable-energy business platform in India and support new opportunities linked to a stable supply of renewable energy.
For Karnataka’s power system, the project represents an investment model that links variable renewable generation with storage. The announcement does not establish when the facility will begin supplying electricity or identify the consumers, distribution companies or market mechanism that will ultimately receive its output. Those details will determine how the project connects to the state’s electricity system and how its stored power is dispatched.
The transaction also highlights the growing role of international strategic investors in Indian clean-energy projects. HFE said the sector is attracting global strategic and institutional capital, supported by India’s focus on clean technology. The company is backed by investors including the International Finance Corporation and KKR.
HFE said its portfolio includes 7.7 gigawatts of renewable-energy assets and 2.9 gigawatt-hours of battery energy storage capacity across India, Ukraine, Vietnam and the United Kingdom. The figures include operating and under-development projects. Its portfolio covers conventional wind and solar photovoltaic assets as well as hybrid power, peak power, firm and dispatchable renewable energy, energy storage and green hydrogen.
The Karnataka project’s next publicly stated milestones are not yet available. Further information on the transaction value, project schedule, generation mix, battery capacity, grid connection and commissioning will be needed to assess when the facility can contribute to the state’s renewable-energy supply.
