Japanese utility Jera Co Inc. and domestic renewable energy engineering firm West Holdings have reached an agreement to develop and build at least 1GW of solar projects in the local market.
Under the agreement, the collaboration will see photovoltaic (PV) parks installed at new and old power plants owned by the Tokyo-based power company. The partners will complete the work within four years before the end of fiscal year 2025, Gera said on Wednesday.
If all of the proposed generation capacity is used, Jera will rank among the largest solar power plants in Japan. Forecasts for capacity deployment are given in the table.
As part of the deal, the utility became a shareholder in West HD by purchasing about 2.3% of its shares. In addition, Jera will purchase solar energy from plants owned by West HD and pursue joint solar business opportunities for "third parties in Japan and overseas."
The deal follows a summit agreement signed in February that will create a commercial partnership between Jera and West Holdings. The partnership is in line with the companies' goals to expand their renewable energy business and promote decarbonization.
Gera aims to achieve net zero growth by 2050.