
Real estate firm Tokyu Land and clean energy developer Renewable Japan have agreed to develop 1GW of renewable capacity in southern Europe, beginning with the acquisition of a 39.9MW solar project in Spain.
The companies, both of which are headquartered in Japan, purchased the Manzanares solar project in central Spain in September. The project began commercial operation in June this year, and Renewable Japan will manage the project through a subsidiary, RJ Eurodevelopment, which raised around US$13.4 million (J¥2 billion) in a funding round last August, and is now looking to expand its renewables portfolio.
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This deal is the first step towards developing a much larger renewable portfolio for Tokyu Land and Renewable Japan, which plan to build, own and operate 1GW of projects in Spain and Italy. While neither company announced further details of their long-term goals, Japanese newspaper Nikkei reported that the companies would invest up to US$2 billion (J¥300 billion) into European renewable power plants over the next five years.
Tokyu Land, meanwhile, noted that the pair have developed more than 2GW of solar capacity in Japan, and the involvement of new renewables developers in the European market will likely be welcomed by a sector that has recently faced questions over its financial viability.
The news also follows the European Council’s adoption of its new Renewables Energy Directive, which will see EU countries aim to generate 42.5% of its power from renewable sources by 2030, up from an earlier target of 40%. Italy, one of the countries Tokyu Land and Renewable Japan are targeting, could stand to benefit from this increased emphasis on renewable energy generation, with the country’s solar developers aiming to add 4GW of new capacity by the end of this year.