Monthly Report

Toyota Tsusho to merge Terras Energy into Eurus Energy next fiscal year

October 4, 2024
Eurus Energy
Both Eurus Energy and Terras Energy are wholly-owned subsidiaries of Toyota Tsusho. (Image: Eurus Energy)

Japan’s largest wind developer Eurus Energy and the primarily solar developer Terras Energy will merge on April 1, 2025, with the former being the surviving company, the two companies and their parent Toyota Tsusho announced on October 3, 2024.

According to the statement, “Through the integration of the two companies, Eurus Energy will operate in 16 countries and regions and become Japan’s No. 1 wind and solar power generation company with a total capacity of 4,332 MW (as of the end of September 2024).”

Currently, Eurus Energy’s operational capacity 3,689MW spread across 117 projects. Of those, 3,299MW (95 projects) is onshore wind and the remainder is solar. The company also has another 1,039MW under construction. Terras Energy’s portfolio consists of 643MW of mostly solar power plants.

In addition to continuing activities as a renewable generator, when merged, “the two companies will work to expand and reinforce the renewable energy value chain by strengthening ‘collection, coordination, and delivery’ through the supply of energy management services that utilize storage batteries and virtual power plant (VPP) platforms, etc.,” said the companies when announcing the merger.

Toyota Tsusho expects cost and efficiency improvements from the merger as well. “The two companies will optimize management resources and strive to further corporate growth,” said the statement. As of the beginning of this fiscal year, Eurus had 617 employees, just over three times the Terras Energy’s 184.

Eurus Energy was established in November 2001 as a 60:40 joint venture between Toyota Tsusho and TEPCO Holdings. It became the former’s wholly-owned subsidiary on August 1, 2022.

Terras Energy was originally established as SB Energy, a wholly-owned subsidiary of SoftBank Group, in 2011. Toyota Tsusho acquired 85% of SB Energy and renamed the company last year. On April 30, 2024, Toyota Tsusho acquired SoftBank Group’s remaining 15% stake in Terras Energy, making the company its wholly-owned subsidiary.

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