Nozomi Energy, an Actis-backed developer and power generator, and French utility ENGIE signed a memorandum of understanding (MoU) for a broad renewables-focused partnership in Japan, the companies announced on March 25, 2025.
Under the partnership, the companies will initially collaborate on PPAs, balancing services, and optimizing battery storage value. “This collaboration with ENGIE, alongside other industry partners, aligns with our broader commitment to driving innovation and supporting the transformation of Japan’s energy landscape,” said Jose Antonio Millan Ruano, Chief Executive Officer of Nozomi Energy.
After serving clients in Japan remotely for a period of time, ENGIE opened its Tokyo office in late 2023. In October 2024, it signed a partnership with EDP Renewables, similar in scope to the one with Nozomi Energy. The company was also tasked by X-ELIO to provide balancing services for its upcoming 14MW Funaki Solar Power Plant in Ube City, Yamaguchi Prefecture.
Launched in May 2023, Nozomi Energy announced an acquisition of a 300MW+ FIT solar power plant portfolio, likely from PAG Renewables, in December 2024. The deal more than tripled its operational capacity to over 400MW. Its total pipeline including under development solar, onshore wind, and battery storage projects stands at about 750MW. The company aims to grow the portfolio to 1.1GW by 2027.
The partnership between the companies comes amid an ongoing shift in renewable development in Japan from the feed-in-tariff (FIT) scheme, which guarantees a fixed per kWh price, to the feed-in-premium (FIP) scheme, which provides a variable premium on top of commercial revenue and requires generators to take on imbalance risk.
Nozomi Energy plans to convert one of the acquired assets, a 21MWAC/31.5MWDC solar power plant in Iwaki City, Fukushima Prefecture, from FIT to FIP to enable its first off-site PPA, signed with JR East earlier this year. The MoU suggests ENGIE may provide balancing services for the project.
