Japan-based Shizen Energy Inc. has expanded its long-term renewable energy partnership with Microsoft Corp. to a total of 100 megawatts, marking a milestone in Japan’s growing corporate clean energy market.
The utilities provider stated it has executed RE purchase agreements with Microsoft for four solar projects across the country. The new deals follow Microsoft’s first RE purchase in Japan, a 25 MW virtual power purchase agreement for the Inuyama Solar Power Plant in Aichi Prefecture.
The latest agreements cover three additional 20-year solar projects located in the Kyushu and Chugoku regions. One of the Kyushu plants has begun operations, while the others are under construction.
Shizen Energy’s engineering subsidiary, Shizen Engineering Inc., will build one of them, and Shizen Operations Inc. will manage operations through a dedicated subsidiary.
“Following the Inuyama Project, we are honored to have signed long-term agreements with olarMicrosoft for several new projects,” said Rei Ushikubo, executive officer at Shizen Energy. “Securing financing from domestic and international institutions shows the growing presence of renewable PPAs in Japan.”
Ushikubo added that Shizen Energy plans to continue prioritizing PPA projects to help corporate customers meet decarbonization goals.
Microsoft’s First Renewable Deal in Japan
Microsoft’s entry into Japan’s renewable power market began in October 2023 when it signed a 20-year VPPA with Shizen Energy for the Inuyama solar project.
The deal marked Microsoft’s first RE purchase in the country and the largest single-asset solar project under a corporate VPPA to reach financial close in Japan.
The 25 MW alternating current plant, financed by Societe Generale with non-recourse project financing worth 10.9 billion yen ($73 million), is scheduled to start operations in December 2023.
Toshiba Energy Systems & Solutions Corp. will act as the aggregator, managing power generation forecasts and bearing any imbalance risks.
“This project is enabling our first renewable energy purchase in Japan and supports our 100 percent renewable energy goal,” said Adrian Anderson, Microsoft’s general manager for renewable and carbon-free energy. “A structure like this is key to promoting grid decarbonization in the country.”
Innovative Financing Structure
The Inuyama project introduced Japan’s first case of non-recourse financing for a VPPA that combines the sale of non-fossil fuel certificates with long-term electricity contracts.
Societe Generale said the deal reflects its strategy to support Japan’s energy transition by designing innovative financing structures for corporate PPAs.
“With our experience in renewable asset classes and PPA financing, we are proud to contribute to this landmark milestone,” said Cedric Chatel, managing director at Societe Generale’s Energy + Group.
Shizen Energy coordinated financing and asset management for the project, while JUWI Shizen Energy Inc. handled engineering, procurement, and construction. Operations and maintenance were assigned to JUWI Shizen Energy Operation Inc.
“The Inuyama project represents the strongest elements of Shizen Energy Group — from local development to financing and PPA arrangement with an international structure,” said Oliver Senter, executive officer for investment and strategy at Shizen Energy.
Expanding Global Footprint
Founded in 2011, Shizen Energy operates with the mission “We take action for the blue planet.” The company has developed solar, wind, and biomass projects across Japan and expanded into Southeast Asia and Brazil.
It has also ventured into energy technology, introducing microgrids, virtual power plants and smart EV charging systems.
With more than 1 gigawatt of renewable energy projects worldwide, Shizen Energy continues to strengthen its role as a global PPA leader. It was recognized by Forbes Japan as the country’s top startup in 2024.
The extended partnership with Microsoft underscores the rising corporate demand for renewable energy in Japan, where long-term PPAs are gaining momentum. For both companies, the collaboration represents a step toward achieving carbon neutrality and a sustainable energy transition.
“We will continue to focus on expanding our PPA business,” Ushikubo said, “to accelerate the integration of renewable energy and contribute to a sustainable society.”
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