AsiaElec: Solar investments and acquisitions on the rise in Japan

Madrid-based Enfinity Global Inc., a renewables developer with offices across Europe, Asia and North America, last week added a 250-MW Japanese acquisition to its global portfolio.

The move was made with backing of the Asia-wide Pacific Alliance Investment Group in addition to Japan’s influential financial services group Nomura Holdings in Tokyo.

Said to carry an enterprise value of €880mn (around $1bn) Enfinity’s latest addition to its 3 GW of renewables projects around the world is made up of a trio of already operational plants, which when combined total 70 MW of capacity, in addition to another five sites currently at various stages of development or construction. These five, when fully operational, will add an additional total combined capacity of 180 MW to the mix.

The lion’s share of this total, around 100 MW, will come online later in the year, with the remaining 80 MW then slated to be linked to the local grid and go operational sometime in 2023.

Speaking after the deal was made public, the CEO of Enfinity Global, Carlos Domenech, said: “The acquisition of this portfolio consolidates Enfinity’s positioning as one of the leaders in Japan’s renewable market. We believe the market will grow significantly to support Japan’s ambitious 2050 decarbonisation target. Our team’s expertise places Enfinity in an excellent position to play an important role in this new scenario.”

Adding his own take to the 2050 goal set by Tokyo, the vice-president of business development at Enfinity, Peter Hennessy, went on to say: “Over the last seven years, members of our team have been developing (these) projects by successfully combining our local capabilities with global know-how. This acquisition reflects our long-term commitment to Japan.”

At present, Japan ranks sixth on the global stage in terms of installed renewable energy capacity and in recent months has seen increased interest in its solar development potential.

The addition to Enfinity’s 3 GW of renewable projects will now bring its capacity in Japan up to 281 MW, all linked to the nation’s current feed-in tariff (FiT) system.

In related news adding a further boost to Japan’s ongoing solar ambitions, another Spanish developer, X-Elio, has in recent days also signed off on a financial package for a solar plant under construction since August 2021, in rural Chiba Prefecture to the east of Tokyo.

The funding supplied by French bank Societe Generale as well as Dutch financial services giant ING will see the 16-MW project at the Sodegaura site on the east side of Tokyo Bay connected to the local grid by the end of the calendar year

When operational it is understood that the site will help offset almost 9,500 tonnes of CO2.

Speaking of the deal, X-Elio’s chief financial officer, David Diaz, said: “(The) closing of the JPY6bn ($53mn) facility agreement is another successful achievement for the company’s business in Japan.”

With the conclusion of the financing package, X-Elio will now move past the 400-MW mark in renewable projects around Japan, where the company’s country manager, Toshiaki Isoi, added: “Providing Japan with reliable, economic and sustainable energy is our core business. We have great expectations in the market and will continue to support the country in the achievement of its long-term renewable (energy) targets.”

The latest addition to its Japan portfolio takes X-Elio’s total renewables capacity to over 2.6 GW, with projects across Europe, North and Central America and Australia.