Japanese energy company JERA has announced the launch of its new renewable energy business, JERA Nex, which will be headquartered in London.
JERA Nex is set to develop, invest in, own and operate a range of renewable energy assets, including offshore and onshore wind, solar and battery storage.
JERA aims to develop 20GW of renewable capacity by 2035 and will use Jera Nex to achieve this by considering selective acquisitions and establishing partnership opportunities to build a robust pipeline for 2035 and beyond.
The majority of operational assets and the development pipeline of 10GW, which JERA has built, will be transferred to JERA Nex to create a centre of excellence in renewables, signifying the next stage of JERA’s growth.
This includes Parkwind, Belgium’s largest offshore wind platform, which JERA acquired in July 2023, boosting its total renewable installed capacity to 3GW.
Significant UK offshore wind market
The UK was chosen to headquarter this company because of its significant offshore wind market and the ever-developing domestic renewable energy sector.
JERA Nex said it will leverage the UK’s “expertise in financing and developing renewables projects” and draw on its own resources to develop capabilities in core markets and expand its pipeline globally.
The business has been established on the belief that an experienced team of renewables specialists backed by a globally integrated energy company creates the platform required to scale a renewable portfolio at pace.
Nathalie Oosterlinck, head of global renewables at JERA, will become CEO of JERA Nex.
She said: “With the launch of JERA Nex, we are bringing together passionate renewable energy people from across the world. Our teams have already delivered pioneering offshore wind farms, from the Taiwan Strait to the Belgian North Sea, as well as leading several onshore projects across the world, making JERA Nex well placed to deliver clean energy for a sustainable future.”
Japanese investment
This is not the first time Jera has ventured into investing in the UK renewable energy market, although it is certainly the most significant step.
Nevertheless, back in early 2019, UK battery storage firm Zenobe Energy secured a £25 million investment from Jera and fellow Japanese power giant Tokyo Electric Power Company (Tepco).
The equity injection was not only one of the largest direct investments in a UK energy storage company but also constituted yet another move from Japan’s energy utilities into the UK power scene.
Zenobe said the equity injection would allow the firm to accelerate its energy storage rollout while also allowing it to expand into new markets.
Over a year later, in December 2020, prominent UK energy supplier Octopus Energy hit a £1.5 billion valuation as it announced an expansion into Asia thanks to a partnership with Tokyo Gas.
The agreement will see the companies launch the Octopus Energy brand in Japan as a 30:70 joint venture. Tokyo Gas will provide working capital and growth funding, and the Octopus Energy Group will take £184 million of additional investment.
Further expansion
TG Octopus Energy will provide 100% renewable electricity and other services to customers in Japan, using Tokyo’s tech haven as a launchpad for further expansion into the Asian market.
Following this, in November 2023, Octopus Energy’s generation arm launched a £3 billion offshore wind fund, following a £190 million investment from Tokyo Gas.
Focusing on Europe, the fund will invest in development, construction, and operational-stage offshore and floating offshore wind farms and companies looking to build new projects – Octopus has said it plans to invest the entire £3 billion by 2030.
So far, Octopus has invested in the two UK wind farms, Hornsea One and Lincs. The company is also investing in new offshore wind projects within Europe and recently made its first investment in the German market.
