Jera and West Holdings Corporation (West HD) have finalised an alliance to develop 1GW of solar power projects in Japan.
Under the agreement, both companies will develop solar power projects for JERA at new sites and at former Jera power plant sites in Japan.
They have a total development target of at least 1GW over four years through to the end of FY2025.
If projects are developed at the scale stipulated in the agreement, Jera will become one of Japan’s largest solar power generation producers.
The two companies will develop, construct, and operate solar power generation projects with the understanding and cooperation of local communities based on consideration for the environment.
Jera has also concluded a share purchase agreement with a shareholder of West HD to acquire approximately 2.3% of the company’s outstanding shares.
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.
The two companies also agreed to consider the sale by West HD to Jera of electricity generated by solar power generation facilities owned and operated by West HD, and to explore joint solar power generation business opportunities for third parties in Japan and overseas.