Sumitomo Corporation of Americas Diversifies into Distributed Energy with Solar and Battery Energy Storage Investment, Opportunity to Expand Globally.
Sumitomo Corporation, through Sumitomo Corporation of Americas (hereinafter collectively referred to as, “Sumitomo Corporation Group”) announced today a tax equity investment in a diverse portfolio of solar photovoltaic (PV) plus battery energy storage projects, led by Pacifico Power. Sumitomo Corporation Group is expanding its Green Power Platform business* as evidenced by this investment which will be Sumitomo Corporation Group’s first in distributed generation.
Sumitomo Corporation Group’s investment includes six projects that consist of 27 MW solar PV and 25 MWh battery storage located in Massachusetts and California, which will serve the equivalent power needs of approximately 4,000 U.S. households as well as support the transition to a more sustainable energy system. The two Massachusetts projects are designated as low-income community solar projects that have been developed under the Solar Massachusetts Renewable Target (SMART) program. These projects provide access to the benefits of renewable energy and discounted electricity rates for local subscribers, especially those without the ability to install solar on-site. Community solar subscribers include residential as well as commercial and industrial (C&I) customers. The community solar market is expected to undergo continued growth and expand from the current size of 6 GW to an estimated 14 GW by 2028, reflecting 8% annual growth.
Additionally, the portfolio includes four behind-the-meter projects in California that are designed to support C&I customers by integrating renewable energy into corporate sustainability strategies, while also reducing energy costs and enhancing reliability. Each project provides tailored energy solutions through the efficient use of on-site solar paired with battery energy storage systems (BESS) under a long-term energy service agreement.
Solar production is intermittent, which means it cannot always generate consistently throughout the day due to limited hours of sunlight and other factors. When paired with BESS, it becomes possible to adjust the system’s output according to demand, which improves efficiency and stabilizes the power transmission and distribution network. By integrating solar PV with BESS, Sumitomo Corporation Group aims to continue to deliver on its commitment to reducing carbon emissions and enhancing grid resiliency, while also fostering sustainable economic growth in local communities. Sumitomo Corporation Group’s collaboration with Pacifico Power signifies its proactive approach to embracing a low-carbon future through critical support for the development of renewables and distributed generation, both in the U.S. and globally.
Through the knowledge gained as part of this investment, Sumitomo Corporation Group will seek to identify further opportunities to expand the community solar business model in the U.S., Japan, and other countries in an effort to expand access to the immense benefits of renewable energy. Sumitomo Corporation Group’s commitment to renewable energy and distributed energy resources will contribute towards achieving sustainable growth and addressing material issues such as “Overcome Climate Change” and “Build Resilient and Prosperous Society”.
Sandro Hasegawa, Corporate Officer of Sumitomo Corporation, General Manager of Energy Innovation Initiative Americas at Sumitomo Corporation of Americas, said:
Sumitomo Corporation Group is committed to providing access to the benefits of renewable energy solutions for all communities.
“Sumitomo Corporation Group has the experience and resources needed to support and expand these solutions in the United States, and we are excited for these new projects to start generating clean electricity.”
*Comprehensive renewable energy platform to be achieved by organizing the development of distributed generation, increasing renewable energy, and utilizing battery storage and electric vehicles.
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Sumitomo Corporation of Americas Diversifies into Distributed Energy with Solar and Battery Energy Storage Investment, Opportunity to Expand Globally. source
