SCOA is active in renewable generation including wind and solar, and including natural gas and waste coal generation. All of SCOA’s power assets are fully contracted to utilities under long-term power purchase agreements. In addition, SCOA’s renewable projects utilize long-term parts and services contracts to minimize exposure to labor and commodities volatility.
Sumitomo Corporation of America's (SCOA) Power and Telecom Business Unit conducts business in a broad range of areas in the infrastructure industry. SCOA is mainly investing in three specific areas: the renewable energy business, the conventional power business, and the telecom carrier business.
SCOA is actively developing new greenfield projects for solar, wind and gas-fired generation. In the U.S., the strategy for renewable generation is to develop projects targeting utilities in states that have mandated renewable energy targets, often referred to as Renewable Porfolio Standards.
Gas-fired generation development strategy in North America is focused on two distinct opportunity sets: firstly, providing fast and reliable balancing energy in regions with high penetration levels of intermittent renewable energy resources such as wind and solar, and secondly, efficient and cost-effect base load generation in regions experiencing high levels of aging coal plant retirements.
In the renewable energy business, a recent SCOA focus, SCOA is aggressively looking for opportunities in high-quality renewable energy projects in the advanced development or construction stage as a long term strategic investor.
Through their interests in Perennial Power Holdings, SC and SCOA are invested in a 474 MW gas-fired Hermiston facility located in eastern Oregon. The facility is specifically designed and marketed as a balancing energy and ancillary services source for integrating the significant wind energy projects along the Columbia River corridor. Other projects and additional regions in the U.S. and Canada are being considered for future development.
On September 28, 2012, SC and SCOA announced an investment in Desert Sunlight Solar Farm, a 550-megawatt solar power project under construction in the California desert, east of Palm Springs. It is the Company’s first solar investment in the U.S.