J-POWER and PHOTON sign agreement to build solar power plants in Japan

Electric Power Development Co, Ltd (J-POWER) and PHOTON Sustainable PV Investment Limited Partnership have signed a solar power aggregation agreement, their second major collaboration in this field.

Introduction to the project

J-POWER has signed a solar power aggregation agreement with PHOTON Sustainable PV Investment Limited Partnership, managed by PHOTON CAPITAL LLC. The agreement is a continuation of a similar agreement signed in November 2023 and is part of a virtual power purchase agreement (PPA) signed in May 2024 with a major Japanese producer. The solar power plants in question will be built on unused land in the Hokkaido, Tohoku and Chugoku regions, with a total capacity of 20 MW DC. J-POWER will be responsible for the management of the electricity generated, including production forecasting, balancing planned and actual volumes, and energy trading.

J-POWER Strategy and Perspectives

For over 70 years, J-POWER has been developing and operating a variety of renewable energy power plants, including hydroelectric, wind, geothermal and biomass. With the second largest market share in hydroelectric and wind power in Japan, J-POWER continues to expand its renewable energy aggregation initiatives. This partnership with PHOTON builds on a solid track record of developing and operating power plants, with the aim of strengthening the growth of renewable energy in the country. Since the establishment of its fund in 2021, PHOTON has focused on developing and investing in new FIT-free power generation projects to implement various PPAs. Their goal is to promote virtual APP in the Japanese industrial sector, providing added value in the form of non-fossil fuels. Despite the increasingly complex environment for the development of PV power plants, PHOTON remains determined to contribute to the development of renewable energy in Japan.

Project Impact and Funding

The current project benefits from a non-recourse financing agreement signed with ORIX Bank Corporation, which guarantees a solid financial base for the construction of solar power plants. By working with like-minded partners, PHOTON aims to become a leading player in the Japanese solar power sector. This aggregation agreement with J-POWER represents a significant step forward in PHOTON’s strategy to develop solid, high-quality projects while contributing to the growth of renewable energy sources in Japan. Both companies are committed to strengthening the supply of renewable energy sources, which is crucial to the country’s energy transformation.