Caisse de depot et placement du Quebec (CDPQ), the Canadian pension and insurance fund, has made its maiden direct infrastructure investment in Japan with JPY 20 billion ($135 million) in local renewable energy developer Shizen Energy to enable it expand development activities in key markets including Japan.
With this capital, Shizen Energy will accelerate its development activities for ground mounted and rooftop solar plants, agrivoltaic projects in Japan where it is also actively advancing onshore and offshore wind power, small-scale hydroelectric, and biomass projects and energy digitalization activities.
Beyond Japan, the company will work on its onsite and offsite power purchase agreement (PPA) model in Southeast Asia and Brazil, while also exploring large scale solar and wind development in partnership with local players (see 150 MW Floating Solar Plans For Malaysia).
Calling the transaction an important milestone for its long-term Asia Pacific infrastructure strategy, CDPQ's Executive Vice President and Head of Infrastructure, Emmanuel Jaclot said, "Japan has a crucial role to play in the decarbonation of Asia, and as an investor with deep experience in renewable energy, we are delighted to be working with the Shizen team to deliver on their ambitious plan for the energy transition."
For Shizen, this deal expands its total fundraising initiatives this year to a total of over JPY 74.4 billion ($502 million).
This investment gives CDPQ a seat on Shizen's board. The duo has also agreed to a co-investment framework under which CDPQ may invest JPY 50 billion ($339 million) in Shizen in the future.
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