Japanese power company Jera has formed a joint venture (JV), MUJI Energy, with Japanese retailer Ryohin Keikaku to develop solar PV projects.
Through a special purpose company (SPC), the new JV will have a 20-80 split between the power company and the retailer. The JV has been launched less than six months after both companies had signed a memorandum of understanding to jointly develop renewable energy projects through a SPC.
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Ryohin Keikaku forecasts to invest JPY2.1 billion (US$14.7 million) in the first year after the JV has been established.
In its first year of establishment, the JV aims to develop 13MW of power generation capacity, which would represent 20% of Ryohin Keikaku’s annual electricity consumption. The electricity generated by the power plants will be provided to Japan Electric Power Exchange (JEPX), while the environmental credits will be acquired by Ryohin Keikaku.
For that purpose, the Japanese retailer entered into a virtual power purchase agreement (PPA) with a subsidiary of JERA, JERA Cross, for the environmental value of the solar PV projects built by the JV.
With this newly formed JV, JERA continues to expand its reach in the development of renewable energy projects. Last year, the company established a subsidiary, JERA NEX, with the goal of developing 20GW of renewable capacity by 2035. Headquartered in London, the subsidiary develops, invests in, owns and operates renewable energy assets, including solar, battery storage and wind. Most of the solar and energy storage assets are located in the Middle East, Asia and North America.
