JERA, the largest power generation company in Japan, producing about 30% of the nation’s electricity, is planning to develop at least 1 GW of solar power by end-2025, with new business partner West Holdings, a Japanese renewable energy engineering company.
JERA, which is also the world’s largest buyer of liquefied natural gas (LNG), said it will acquire 2.3% of West Holding’s outstanding shares, as part of a business alliance to combine their strengths and accelerate the development of solar power in Japan.
“Amid calls for energy decarbonisation to achieve a decarbonised society by 2050, solar power generation, with its established technology and relatively short construction period, is a promising near-term option for increasing the installed capacity of renewable energy in Japan,” JERA said in a statement.
Based on the agreement announced Wednesday, both companies will develop solar power projects for JERA at new sites and at former JERA power plant sites in Japan, with a total development target of at least 1 GW over four years through the end of 2025. “If projects are developed at the scale stipulated in the agreement, JERA will become one of Japan’s largest solar power generation producers,” said JERA.
The two companies also agreed to consider the sale by West Holdings to JERA of electricity generated by solar power generation facilities owned and operated by West, and to explore joint solar power generation business opportunities for third parties in Japan and overseas.
Aiming to become a global leader in renewable energy by 2025, JERA said it is actively engaged in the development of renewable energy projects. JERA will continue to work with various companies in Japan and overseas to expand the installed capacity of renewable energy and to achieve its objective of “JERA Zero CO2 Emissions 2050.”
JERA is 50-50 joint venture between TEPCO Fuel & Power, a wholly owned subsidiary of Tokyo Electric Power Company, and Chubu Electric Power, founded in April 2015.
JERA is also becoming more active in Japan’s nascent offshore wind sector.