Eyeing the growing Japanese corporate solar market, Tokyo Century Corporation and JFE Engineering Corporation have launched a 50:50 joint venture (JV) called Urban Energy PV LLC to supply solar power to local businesses via long-term power purchase agreements (PPA).
The JV will develop on-site solar power systems in the form of rooftop PV or ground mounted systems close to the demand centers, while entering PPA contracts with end users. Urban Energy will continue to operate and own the facilities installed. It will also provide operation and maintenance services to the systems deployed.
While Tokyo Century brings to the table its financial prowess as a leasing and financial services company, JFE will use its engineering expertise for various sectors including energy for the new company.
As corporates need a stable supply of clean energy to meet their carbon-neutral initiatives, the JV partners see scope in further expanding their domestic corporate PPA business in the future.
Wood Mackenzie analysts count 7 GW of corporate PPAs to have been signed in Asia Pacific region in 2022, as per their November 2022 report, led by solar. Japan is among the nations they see as slowly opening up to its potential to drive clean energy generation through this business model (see Expect 7 GW Worth Corporate PPAs In Asia Pacific In 2022).