The country has reported ~4.8 GW of transactions for onshore wind and solar generation assets, with another 1.5 GW of acquisitions reported YTD 2023. Enerdatics understands that the surge is primarily attributed to the country’s decision to shift its pricing regime from feed-in tariffs (FiT) to feed-in premiums (FiP). The new regime allows power producers to sell electricity in the spot market at a premium to wholesale prices, improving the earnings of renewable energy projects. Additionally, Japan benefits from low-cost finance and high liquidity among its large pension funds and insurance companies. Further, the presence of a stable political and fiscal regime and rising energy demand serve as key enablers of investments in the country’s renewable sector.
Recent deal: Nozomi Energy, a $500mn renewables platform newly created by Actis in Japan, has acquired Hergo Japan Energy from Infrastrutture SpA. Hergo currently has a 230 MW portfolio of operating and development-stage solar and onshore wind power plants, plus a significant pipeline of early-stage projects. The move marks Actis’ entry into Japan’s renewables market with a target to install 1.1 GW of onshore wind and solar power by 2027.
Other significant transactions: Actis’ move closely mirrors that of Octopus Energy, which also recently entered Japan’s renewables market through investment in developer Yotsuya Capital. Other major transactions include Enfinity Global’s acquisition of a 250 MW portfolio, PAG’s takeover of First Solar’s development and O&M platform, and Osaka Gas’ purchase of a stake in a 131 MW solar portfolio from Sonnedix.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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