Japanese power generator JERA has entered an agreement with West Holdings Corporation (West HD) to develop at least 1 GW of solar power capacity in Japan over the next 5 years, aligned with its objective to achieve zero CO2 emissions by 2050 and become one of the largest solar power producers in the country.
West HD is a local solar power company in the business of large scale, industrial and residential rooftop solar. Under the heads of agreement entered which is yet to be finalized, the alliance will develop solar power generation projects for JERA at new sites, and also at the latter's power plant sites in Japan. JERA may also will invest in West HD.
According to their forecast of development capacity overtime through the alliance, the companies will develop 200 MW in 2022, and take it to 1.1 GW in 2026.
The duo said they will also explore joint solar power generation business opportunities for 3rd parties within Japan and overseas, as per current forecast.
JERA is the country's largest power generator accounting for about 30% of the national electricity. The Japanese utility plans to achieve a zero emissions target by shutting down all its inefficient coal power plants by 2030. It will remain invested in thermal power plants, but will focus on reducing their carbon emission intensity by 20%. By 2050, it will shift to thermal power plants using 100% ammonia as fuel. Co-firing with hydrogen is also in the current plans.
JERA aims to also increase its renewable energy development target of 5 GW in 2025. For this, it will explore more such collaborations with more companies within and outside of Japan.
Japan aims to achieve carbon neutrality by 2050. According to a March 2021 report by Germany's Agora Energiewende and Finland's LUT University, the country has a potential to have a 100% renewables based power supply which can grow up to 524 GW by 2050 (see Zero Carbon Energy Supply Possible In Japan: Report).
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