Japanese renewables developer Shizen Energy Inc has signed a virtual power purchase agreement (VPPA) with Microsoft Corp (NASDAQ:MSFT) in connection with a 25-MW solar project in Japan.
The project achieved financial close thanks to this 20-year VPPA, Shizen said today.
Societe Generale has funded the development and construction of the scheme with a JPY 10.9 billion (USD 73m/EUR 68.8m) non-recourse finance, the first for this type of deal attached to a VPPA in the country.
Located in Inuyama city, central Aichi prefecture, the solar plant is scheduled to commence operation in December 2023. It is the largest single-asset solar power plant contracted under a corporate VPPA in Japan, Shizen noted.
“Shizen Energy’s expertise and presence in the Japanese market is enabling our first renewable energy purchase in Japan and it’s great to see near-term supply for our 100% renewable energy goal,” noted Adrian Anderson, General Manager, Renewable and Carbon Free Energy at Microsoft.
(JPY 100.0 = USD 0.671/EUR 0.632)