Japan’s Sumitomo Corporation has agreed to acquire a 49% stake in Clean Solar Power (Baniyana) Pvt. Ltd., a special purpose company developing Hero Future Energies’ (HFE) 500 MWp wind and solar project in Karnataka. The project, located in Bidar district, also includes a co-located 200 MWh battery energy storage system (BESS), designed to support a more consistent supply of renewable electricity. The companies announced the partnership on October 5, 2026.
The project’s distinguishing feature is its integration of wind, solar and battery storage under one development. Solar and wind generation follow different production patterns, allowing their combined output to reduce some fluctuations. The battery system is expected to help manage the remaining variations and deliver electricity during high-demand periods, particularly in the morning and evening. This integrated approach is intended to support a more dependable renewable power supply rather than relying on generation from a single source.
Electricity from the project will be sold primarily to SJVN Ltd. under a 25-year power purchase agreement (PPA). Any surplus electricity is expected to be traded on the power exchange market. The long-term agreement provides an established route to market, while the combination of generation technologies and storage will be important for meeting the contracted supply requirements. Commercial operations are scheduled to begin in March 2027, according to the project announcement.
Under the proposed ownership structure, HFE’s wholly owned subsidiary, Hero Solar Energy Pvt. Ltd., will retain a 51% stake, while Sumitomo will hold the remaining 49%. The financial value of the transaction has not been disclosed. The arrangement gives Sumitomo exposure to an integrated renewable energy asset while allowing HFE to retain majority ownership of the project company.
For Sumitomo, the investment is also an opportunity to develop expertise in coordinating multiple renewable sources with battery storage. The Japanese trading and investment group plans to use the experience to pursue further energy-management opportunities in India and other Asian markets, where grid operators increasingly need ways to balance variable renewable generation with demand. Its wider energy-management activities include energy aggregation and battery storage control.
The deal adds to HFE’s portfolio of renewable generation and storage projects across India and international markets. The company has also been developing firm and dispatchable renewable energy solutions, which combine generation and storage to improve the timing and reliability of electricity supply. The Karnataka project reflects the growing role of hybrid renewable assets in meeting contracted power requirements as India expands its clean energy capacity