JERA, Japan’s power generator, announced that it will invest $1.4 billion over the next five years to create 1 GW of solar power farms in Japan, in collaboration with local energy developer West Holdings Corp. To help combat climate change, JERA also plans to increase its renewable energy capacity to 5 GW by 2025, up from approximately 1.5 GW presently.
JERA will request West Holdings to develop solar power farms on approximately 7,000 locations, including former JERA power plant sites, and sell the electricity to corporate clients seeking sustainable energy under the terms of the agreement. In 2022, JERA intends to purchase a minority position in West Holdings. In Japan and Thailand, West Holdings has built over 65,000 solar power plants with a total capacity of around 2 GW.
JERA, a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power with a thermal power capacity of around 70 GW, aspires to achieve net-zero carbon dioxide emissions by 2050.
In September 2021, JERA signed a share purchase agreement with Aboitiz Equity Ventures and Aboitiz & Company for the purchase of approximately 27 per cent of Aboitiz Power Corporation’s outstanding shares for $1.58 billion. JERA also agreed to work with Aboitiz Power to source and manage liquefied natural gas (LNG) for potential LNG power plants to supplement intermittent renewable energy. Aboitiz Power planned to increase its power generation capacity to 9.2 GW by 2030 and achieve a 50:50 clean energy and thermal capacity mix, to fulfil future electricity demand while promoting renewable energy in the Philippines.
REGlobal’s Views: Like many other energy giants, JERA is foraying in a big way into the renewable energy space. This move will help the company to diversify its energy portfolio especially with the global thrust on clean energy and the reducing prices of solar.
