Sumitomo, CEP Solar Form JV for Renewable Energy in Virginia

Japan’s Sumitomo Corp and Perennial Power Holdings Inc., a subsidiary of Sumitomo Corp. of Americas, have set up a joint venture with Virginia-based CEP Solar LLC to deliver renewable energy projects across Virginia. The companies said the JV will provide support for the state’s energy supply, in part to help with power demand from Virginia’s numerous data centers.

The partners on October 15 said they will commercialize a portfolio of solar and battery storage assets of more than 1.5 GW, with construction expected to begin in late 2025. The groups also plan to originate new projects.

Virginia is the world’s largest market for data centers. The companies said the joint venture will make use of CEP’s local development expertise and Sumitomo’s strengths in project financing to simultaneously advance multiple projects across Virginia.

“Our partnership with CEP provides Perennial with greater geographic diversity and exposure to highly attractive end markets, and further accelerates our efforts to expand renewable footprints in the United States,” said Takuya Yoshizawa, president of Perennial Power Holdings.

Tyson Utt, co-founder of CEP, said, “CEP’s goal is to enable Virginia’s successful transition to a clean economy by developing the highest-quality solar and storage projects through long-lasting relationships. This partnership with Perennial aligns with our core values and will accelerate our ability to deliver a scale-diversified portfolio, which consists of both solar and battery storage projects, providing long-term economic and environmental benefits for our partnering communities, landowners, and customers across the Commonwealth.”

Virginia is working to build more renewable energy capacity, primarily due to the Virginia Clean Economy Act of 2020 (VCEA). The VCEA aims to convert the state’s electric grid to 100% clean energy by 2050. SC Group has seven renewable energy businesses in the U.S. At present, through Perennial, the group manages five renewable energy projects, primarily in onshore wind, with a total generation capacity of about 640 MW. It has net owned capacity of 313 MW, with a goal to expand the net capacity to 1 GW by 2030.

—Darrell Proctor is a senior editor for POWER (@POWERmagazine).