CDPQ acquires 80% stake in a solar plant in Japan

CDPQ, a global investment group, today announced it has acquired an 80% stake in a solar power generation plant in Japan, alongside its portfolio company Shizen Energy Inc. (Shizen Energy).

The Inuyama project, which went into operation in the last few days, has a total solar power generation capacity of 31 MW, enough to power the equivalent of 7,850 homes. The solar power plant is located in Aichi prefecture.

This acquisition marks CDPQ’s first co-investment with Japan’s Shizen Energy as part of a JPY 50 billion (CAD 460 million) co-investment framework announced in October 2022, when CDPQ invested JPY 20 billion (CAD 186 million) in the company to support its growth. Both partners are currently exploring further co investment opportunities within the framework of this agreement.

Emmanuel Jaclot, CDPQ’s Executive Vice-President and Head of Infrastructure, said: “Japan plays a decisive role in the decarbonization of Asia and, as an experienced investor in renewable energy, we are delighted to join forces with our portfolio company Shizen Energy for this first joint investment in a solar plant. This transaction represents a further step in our partnership as we continue to explore more co-investment opportunities in the energy transition space.”

Oliver Senter, Executive Officer of Shizen Energy responsible for Investment & Finance, said: “We are delighted to announce a first co-investment project between CDPQ and Shizen. Inuyama is an ideal project for co-investment given that it was developed, built and will be operated by Shizen Energy throughout its lifetime. We have a pipeline of around 3 GW of renewable energy projects in Japan, which we hope to deliver in the next three to five years.”