Japan’s Nomura Real Estate and solar provider Clean Energy Connect have launched a joint renewable energy project using corporate power purchase agreements (PPAs), part of a broader shift in the country towards privately contracted renewable power as government subsidy schemes gradually evolve.
Nomura Real Estate is one of Japan’s major listed property developers and part of the Nomura Group financial conglomerate. The company operates nationwide across housing, commercial real estate, urban redevelopment and logistics infrastructure, placing it among the country’s larger real estate groups by asset scale and project pipeline.
The companies said they will establish a jointly funded special-purpose vehicle – a legally separate entity set up to run a specific project – to develop and operate about 550 small-scale solar power plants across Japan. The electricity generated, along with associated environmental credits representing carbon reductions, will be supplied directly to the Nomura Real Estate Group under long-term contracts.
The project uses a “non-FIT” model, meaning the solar plants will operate without Japan’s feed-in tariff subsidy system, under which utilities buy renewable electricity at government-set prices. Instead, electricity will be sold directly to Nomura through private corporate contracts, providing long-term price certainty while reducing reliance on public subsidies.
The collaboration is aimed at expanding renewable energy use as part of Nomura’s broader carbon neutrality strategy. Under the structure, the joint venture will handle generation and supply, while Nomura will use the electricity to power buildings and facilities across its portfolio.
Annual generation from the solar network is expected to reach about 52.5 million kilowatt-hours (kWh), equivalent to roughly 40 per cent of the group’s purchased electricity, known as Scope 2 emissions, or indirect emissions from purchased electricity, for the financial year ending March 2025.
Nomura Real Estate Group has set targets to cut direct and electricity-related emissions (Scope 1 and 2) by 60 per cent and supply chain emissions (Scope 3) by 50 per cent by fiscal 2030, compared with fiscal 2019 levels.
Clean Energy Connect specialises in developing solar projects and supplying renewable electricity through off-site corporate PPAs, where electricity is generated at one location and delivered through the grid to a corporate customer elsewhere.
Under the new arrangement, Clean Energy Connect will lead plant development and operations, while Nomura will manage electricity procurement and carbon accounting. Power generated will be supplied exclusively to Nomura facilities.
Each solar site will also be equipped with emergency-use power outlets designed to provide electricity access to nearby residents during disasters, combining distributed renewable generation with local resilience functions.
The roughly 550 plants will form a geographically distributed network across Japan, reducing reliance on large, centralised power stations and improving supply stability during disruptions.
The companies did not disclose plans to resell power or expand the project in later phases, but said they are considering providing decarbonisation support to companies outside the Nomura group in the future.
Growing corporate PPA market
The project reflects a wider trend in Japan, where corporate PPAs are gaining traction as companies seek stable renewable electricity supply while managing fuel price volatility and meeting decarbonisation targets.
Corporate PPAs are increasingly seen as attractive from both cost and emissions perspectives as fossil fuel prices remain elevated and corporate climate disclosure requirements expand.
Since Japan’s first corporate PPA deals were signed in 2021, the number of disclosed agreements has grown to more than 500, representing over 2.5 gigawatts of installed or planned capacity, according to market data, with further growth expected as the country moves away from heavy reliance on feed-in tariff subsidies.
Corporate PPAs are also expected to play a central role in corporate-led renewable adoption in Japan, supported by the shift from FIT subsidies toward market-based mechanisms such as feed-in premium systems and private procurement.
Policy and structural shift
The shift toward corporate procurement comes alongside broader policy evolution. Japan has introduced carbon pricing legislation under its Green Transformation (GX) framework and continues to refine renewable subsidy structures, reflecting a gradual move toward market-driven decarbonisation mechanisms.
Government policy is also focusing on long-term energy system stability, including reforms to power markets and capacity mechanisms, which some analysts say could make long-duration supply contracts, including corporate PPAs, more important as anchor revenue for renewable and storage projects.
Japan’s long-term energy strategy targets renewables accounting for roughly 36–38 per cent of the electricity mix by 2030, though achieving that goal remains challenging due to grid constraints and project development delays, increasing pressure to scale private-sector renewable procurement.
