Octopus Energy kicks off Asian renewables push with first Japanese solar deal
- 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
London/Tokyo, 5th April 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.”
Notes to editors:
This latest solar developer investment news comes as Octopus Energy Generation continues to grow its renewables investment and fund management team in Asia, driven by investment lead Shamik Chatterjee based in Singapore.
*Wood Mackenzie article, 4 March 2023
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About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. This means reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses.
As one of Europe’s largest investors in renewable energy, its fund management specialist team launched in 2010 with a mission to accelerate the transition to a future powered by renewable energy. This team manages over 3 GW of renewable energy assets like wind and solar farms across 13 countries, worth nearly £6bn. These renewable projects generate enough green energy to power 2 million homes every year, and is the equivalent of taking over 1 million petrol cars off the road. The business also launched the Fan Club in the UK 2021, the world's first local energy tariff that provides cheaper, greener energy to customers living near local wind turbines when the wind blows, with a discount of up to 50%. Thousands of people have got in touch asking for the Fan Club in their community.
For more information, check out our website.
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. With operations in 14 countries, Octopus Energy Group has a truly global reach.
Octopus’s domestic energy arm already serves 5.3 million customers with cheaper greener power, through Octopus Energy, Bulb, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a nearly £6 billion portfolio of renewable energy assets across the globe.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support 30 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following investments from Generation Investment Management and Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. These were the company’s third and fourth major investments since launching to the market.
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