- Octopus’ first investment in Asian renewable generation, with more to come
- Backs Yotsuya to develop 250 MW solar, enough for almost 100,000 homes
- Move comes as Octopus Energy’s retail business in Japan crosses 160,000 customer mark
According to the company website press release on April 5, 2023, Octopus Energy’s generation arm - who manage £6bn green energy assets globally - announces its investment in Yotsuya Capital, an innovative solar developer in Japan, with the aim to accelerate Japan’s energy transition.
The deal marks Octopus’ first step into the Asian renewables market, with further projects already in the pipeline in Japan and across the continent.
The initial seven figure investment, which was made on behalf of the Sky fund (ORI SCSp) which is managed by Octopus Energy Generation, will enable Yotsuya Capital to develop 250 MW of new solar farms in Japan in the next five years.
Yotsuya Capital is a renewable energy developer with a core focus on solar energy, based in Tokyo. It is looking to develop solar farms in all regions of Japan, on sites where solar can add value to surrounding areas. Yotsuya plans to sell the energy generated in the form of long-term corporate Power Purchase Agreements (PPAs).
The new solar power could generate enough green power for the equivalent of almost 100,000 homes, avoiding 140,000 tonnes of CO2. This is the same as removing 77,000 petrol cars or planting over 685,000 trees every year.
Japan is the world’s 3rd largest economy with strong electricity demand. Renewables make up c. 20% of Japan’s electricity generation. The Japanese government is aiming to nearly double this to 38% by 2030, contributing to its plan to reach net zero by 2050. And some estimates show Japan will need around $147bn investment in renewables and storage until 2030*.
This news comes amidst reports British Government officials are due to visit Japan this month, in the first senior UK visit since the UK joined countries including Japan in the Comprehensive and Progressive Trans Pacific Partnership (CPTPP).
Zoisa North-Bond, CEO of Octopus Energy Generation, said: “There’s a huge opportunity to help meet Japan’s renewables targets and accelerate its clean energy transition. This investment in fast-growing solar developer Yotsuya is our first step into Asian renewables - and it’s only the beginning. We’ve got big plans to scale our team in Asia, and invest in and build even more green power across the continent.”
Toshiaki Isoi, CEO and Representative Member 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. It helps us contribute to Japan’s net zero target by 2050 while also making a positive impact on the local community.”
Octopus Energy Group entered Japan’s energy market in December 2020, launching a joint venture with Japan’s leading energy company Tokyo Gas. The newly formed energy retailer provides 100% green electricity to households and recently crossed the 160,000 customer mark. It aims to serve 1 million Japanese households by 2026.
Hajime Nakamura, CEO of Octopus Energy in Japan, said: “We are incredibly proud of the pace at which we’ve been able to grow our energy retail business here in Japan, helping drive Japan’s road to net zero. This decision to invest in renewable energy power development is the next logical step on Octopus’ path to increasing its footprint in Japan, and a meaningful step to accelerate the green energy revolution across the region.”
