Nomura Real Estate has partnered with Clean Energy Connect to roll out a large renewable energy program across Japan. The initiative will see the development of around 550 small-scale solar power plants, marking a strong shift from government-backed subsidy systems to private, corporate-led clean energy agreements.
The two companies have formed a joint venture to manage the construction and operation of the distributed solar sites. Unlike traditional projects that operate under Japan’s feed-in tariff (FIT) scheme, this initiative will follow a “non-FIT” model. Under the earlier FIT system, utilities were required to purchase renewable electricity at fixed, government-set prices. In this case, however, the electricity generated by the solar plants will be sold directly to Nomura Real Estate through long-term corporate power purchase agreements (PPAs). Environmental credits linked to the generation will also be transferred to the developer.
This structure is expected to provide Nomura with long-term price stability while reducing dependence on public subsidies. Once completed, the network of solar facilities is projected to generate about 52.5 million kilowatt-hours of electricity annually. This would cover nearly 40 percent of the company’s total purchased electricity needs.
The solar rollout forms a key part of Nomura’s climate strategy. The company aims to reduce its direct and electricity-related carbon emissions by 60 percent by 2030. Clean Energy Connect will handle the technical development and operational management of the solar plants, while Nomura will focus on energy procurement and tracking emission reductions across its residential and commercial property portfolio.
A notable feature of the program is its focus on community resilience. Each of the 550 sites will include emergency power outlets that can provide electricity to local residents during natural disasters. By spreading the solar plants across multiple locations instead of building one large facility, the partners aim to strengthen grid stability and lower the risk of widespread outages.
The collaboration reflects a broader trend in Japan, where corporate PPAs have grown rapidly since 2021 as companies look to meet decarbonization targets and manage energy price risks. With national policy increasingly supporting market-based mechanisms and carbon pricing, private-sector participation in renewable energy is expanding.
Through this initiative, Nomura Real Estate is positioning itself as an active participant in Japan’s clean energy transition while contributing to the country’s goal of raising the share of renewables in its energy mix to nearly 38 percent by 2030.
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