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JERA Co., Inc. (“JERA”) and West Holdings Corporation (“West HD”) have reached an ahead agreement (the “Agreement”) on a business alliance for the development of solar power generation projects in Japan.
Amid calls for energy decarbonization to achieve a decarbonized society in 2050, solar power generation, with its established technology and relatively short construction period, is a promising near-term option for increasing the installed capacity of renewable energy in Japan.
JERA and West HD have concluded the Agreement to form a business alliance as a way to combine their respective strengths in energy to accelerate the development of solar power generation in Japan, to grow their renewable energy businesses, and contribute to achieving a decarbonized society.
Based on the Agreement, JERA and West HD will continue discussing the following topics in detail, aiming to reach a final agreement by the end of March this year:
- West HD prioritizing the development of solar power generation projects for JERA at new sites and former JERA power plant sites in Japan (targeting total development of at least 1 GW over the next 5 years)
- JERA’s capital participation in West HD
- Power exchange between the two companies, including solar power
- Exploring joint solar power generation business opportunities for third parties in Japan and overseas
If projects are developed at the scale stipulated in the Agreement, JERA will become one of the largest solar power producers in Japan.
Aiming to become a global leader in renewable energy in 2025, JERA is actively engaged in the development of renewable energy projects. With an eye to revising upward its renewable energy development target of 5 GW in 2025, JERA will continue to work with various companies in Japan and overseas to expand the installed capacity of renewable energy and to achieve its objective of “JERA Zero CO2 Emissions 2050.”
West HD, also looking toward 2025, has launched the “West Group Carbon Neutral Vision 2025” and is working to reduce CO2 emissions throughout society. West HD aims to be involved with 2.0 GW in renewable energy generating capacity in Japan and overseas, focusing on solar power plants developed, constructed, and sold by the West Group, solar power plants owned by the West Group, mega solar power plant renewal projects, and the development and construction of solar power plants in ASEAN countries. Through its alliance with JERA, West HD seeks to raise this target even higher.