Shizen Energy, Microsoft reach 100 MW milestone in Japanese solar power deal

Shizen Energy Inc. has announced that its long-term renewable energy purchase agreements with Microsoft Corporation for solar projects in Japan have achieved a total capacity of 100 megawatts (MW). The milestone follows the addition of three new projects under 20-year contracts.

This expansion builds on an initial agreement for the Inuyama Solar Power Plant, which was Microsoft’s first long-term renewable energy deal in Japan, established in October 2023. The new solar power facilities are located in the Kyushu and Chugoku regions of western Japan.

All three new projects have successfully completed project financing. One of the plants in Kyushu is already operational, while the remaining facilities are under construction. Shizen Energy’s group companies are managing key aspects of the development, with Shizen Engineering Inc. handling construction for one site and Shizen Operations Inc. scheduled to oversee the operation and maintenance of the power plants.

The agreements, known as Corporate Power Purchase Agreements (PPAs), are instrumental in financing new renewable energy infrastructure. They provide a stable, long-term revenue stream that enables developers to secure investment for projects that add new clean energy capacity to the national grid.

Rei Ushikubo, an Executive Officer at Shizen Energy, commented on the expanded partnership. “We are very honoured to have signed new long-term contracts with Microsoft for multiple projects, following the Inuyama project,” Ushikubo stated. “The fact that we were able to secure financing from domestic and international financial institutions for these projects is evidence of the growing presence of long-term renewable energy purchase agreements in the Japanese market. We will continue to focus on this business to support our customers’ decarbonisation efforts.”