Jera, West HD ink deal to co-develop 1.1 GW of solar in Japan

Japanese utility Jera Co Inc and domestic renewable engineering firm West Holdings have finalised a deal that calls for the development and construction of at least 1 GW of solar projects on the local market.

Under the agreement, the tie-up will install photovoltaic (PV) parks at new and former power plant sites owned by the Tokyo-based electric company. The partners will work on this over a four-year period through the end of fiscal 2025, Jera said on Wednesday.

Provided that all of the proposed capacity goes online, Jera will rank among Japan’s largest solar power generators. A forecast for capacity deployments is given in the table.

As part of the deal, the utility has become a shareholder of West HD by purchasing around 2.3% of its stock. Additionally, Jera will buy solar power from plants owned by West HD and seek “joint solar power business opportunities for third parties in Japan and overseas.”

The deal comes on the heels of a heads of agreement signed in February to set up a business partnership between Jera and West Holdings. The collaboration aligns with the companies’ goals to expand their renewable energy operations and contribute to decarbonisation.

Jera aims to become net zero by 2050.

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