Strategic Collaboration to Develop Solar Power Plants in Hokkaido, Tohoku, and Chugoku Regions
J-POWER and PHOTON ink agreement for solar power plants in Japan.
Electric Power Development Co., Ltd. (J-POWER) and PHOTON Sustainable PV Investment Limited Partnership have entered into a service aggregation contract for solar power plants, marking their second major collaboration in this field.
Project Overview
J-POWER has signed a service aggregation contract for electricity generated from solar power with PHOTON Sustainable PV Investment Limited Partnership, managed by PHOTON CAPITAL LLC.
This contract follows a similar agreement signed in November 2023 and is part of a Virtual Power Purchase Agreement (PPA) concluded in May 2024 with a major Japanese manufacturer.
The solar power plants will be developed on unused land in the Hokkaido, Tohoku, and Chugoku regions, with a total capacity of 20 MW DC. J-POWER will be responsible for managing the generated electricity, including production forecasting, balancing planned and actual volumes, and energy trading.
J-POWER’s Strategy and Outlook
For over 70 years, J-POWER has developed and operated various renewable energy plants, including hydroelectric, wind, geothermal, and biomass.
With the second-largest market share in Japan for hydroelectric and wind power generation, J-POWER continues to expand its renewable energy aggregation initiatives. This collaboration with PHOTON builds on a solid history of plant development and operation, aiming to strengthen the growth of renewable energy in the country.
PHOTON’s Focus and Commitment
Since establishing its fund in 2021, PHOTON has focused on developing and investing in new non-FIT power generation projects, aiming to realize various PPA arrangements.
Their goal is to promote virtual PPAs in the Japanese industrial sector, providing non-fossil fuel added value. Despite an increasingly complex environment for developing photovoltaic solar power plants, PHOTON remains committed to contributing to the expansion of renewable energy in Japan.
Project Impact and Financing
The current project benefits from non-recourse financing signed with ORIX Bank Corporation, ensuring a solid financial foundation for the realization of the solar power plants. By collaborating with like-minded partners, PHOTON aims to become a leading player in Japan’s solar power generation sector.
This aggregation contract with J-POWER represents a significant step in PHOTON’s strategy to create robust and high-quality projects while contributing to the growth of renewable energy in Japan.
Commitment to Renewable Energy Supply
Both companies are committed to strengthening the supply of renewable energy, which is crucial for the country’s energy transition.