JERA and West Holdings Corporation (West HD) have today reached a heads of agreement on a business alliance to develop solar power generation projects in Japan.
Amid calls to achieve a decarbonised society in 2050, 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.
Under the agreement, JERA and West HD will combine their respective strengths in energy to accelerate the development of solar power generation in Japan, to grow their renewable energy businesses, and to contribute to achieving a decarbonised society.
The pair are currently discussing West HD prioritising the development of solar power generation projects for JERA at new sites and former JERA power plant sites in Japan.
They are targeting total development of at least 1GW over the next 5 years.
Also being considered is JERA’s capital participation in West HD, and a power exchange between the two companies, including solar power.
Finally the partnership will look at exploring joint solar power generation business opportunities for third parties in Japan and overseas.
JERA and West HD aim to reach a final agreement by the end of March this year.
If projects are developed at the scale stipulated in the agreement, JERA will become one of the largest solar power producers in Japan.
With an eye to revising upward its renewable energy development target of 5GW in 2025, JERA will continue to work with various companies in Japan and overseas to expand the installed capacity of renewable energy and to achieve its objective of “JERA Zero CO2 Emissions 2050.”
West HD, also looking toward 2025, has launched the “West Group Carbon Neutral Vision 2025” and is working to reduce CO2 emissions throughout society.
West HD aims to be involved with 2GW in renewable energy generating capacity in Japan and overseas, focusing on solar power plants developed, constructed, and sold by the West Group, solar power plants owned by the West Group, mega solar power plant renewal projects, and the development and construction of solar power plants in ASEAN countries.
Through its alliance with JERA, West HD seeks to raise this target even higher.