Sustainable energy supplier Octopus Energy has announced its first ever investment into Asian renewables generation.
The UK-based sustainable energy group has invested a “seven figure” sum in Yotsuya Capital, a Japanese solar power company.
The funding will enable Yotsuya Capital to develop 250 MW of new solar farms in the next five years, the company said, enough to power 100,000 homes and to avoid 140,000 tonnes of CO2 emissions.
Yotsuya will not sell the energy produced to individuals but to corporate customers in the form of long-term power purchase agreements.
The company also has energy investments in Ireland, Finland, Poland and Sweden.
Octopus first entered the Japanese market in December 2020 in a joint venture with Tokyo Gas.
As part of that deal, Octopus Energy took a 30 per cent stake of TG Octopus Energy which now has 160,000 customers in Japan.
Japan is the world’s third largest economy and has a population almost twice as large as the UK’s, representing an enormous opportunity for the energy supplier.
The Japanese government is aiming to nearly double the proportion of its electricity which comes from renewables to 38 per cent by 2030, up from 20 per cent now, as part of its drive for Net Zero by 2050.
Consultants Wood Mackenzie calculated last month that Japan will need around $147bn investment in renewables to meet its aspirations.
40 per cent of the UK’s energy supply came from renewables last year.
Zoisa North-Bond, chief executive of Octopus Energy Generation, said: “There’s a huge opportunity to help meet Japan’s renewables targets and accelerate its clean energy transition.”
“We’ve got big plans to scale our team in Asia, and invest in and build even more green power across the continent”, she added.
Toshiaki Isoi, chief executive of Yotsuya Capital, said: “This funding from Octopus is transformational for us. It means we can accelerate our growth to the next level and develop much more solar across Japan in the coming years.”