NTT, JERA to Acquire Japan’s Industry-Leading Wind Power Developer GPI

Nippon Telegraph and Telephone Corp (NTT) [9432:JP] and JERA, Japan’s largest power generation company, have reached an agreement to jointly purchase a 99% stake in Green Power Investment (GPI), a Tokyo-based renewable energy firm, for approximately JPY300bn (USD2.18bn), as reported by Nikkei Asia on May 18. The deal is expected to be one of the largest transactions in Japan’s renewable energy sector, with NTT affording about 80% of the acquisition cost. Through the partnership, the three companies plan to leverage their collective expertise, knowledge, and capabilities in renewable energy development and construction in Japan. JERA believes that integrating NTT’s recourses, particularly for onshore wind, and JERA’s expertise in offshore wind power will further enhance the corporate value of GPI.

Founded in 2004, GPI has developed one of the largest onshore and offshore wind platforms in Japan in terms of combined capacity. It currently owns and operates six renewable energy projects with a total capacity of 337 megawatts (MW), and has two projects under construction with a total capacity of 192 MW. Both NTT and JERA aim to accelerate their efforts to decarbonize through the acquisition of GPI. NTT sees renewables as a growth pillar and aims to effectively reduce its greenhouse gas emissions to zero in fiscal 2040. JERA, as Japan’s top burner of fossil fuels, is actively expanding its presence in renewable and low-carbon energy on a global scale. In March 2022, JERA also signed an agreement with Virya Energy [VIRYA:IN] to acquire 100% equity in Parkwind, Virya’s offshore wind energy platform.

Sources:

https://asia.nikkei.com/Business/Business-deals/NTT-JERA-plan-Japan-s-largest-acquisition-in-renewables

https://www.jera.co.jp/en/news/information/20230518_1448

https://www.nippon.com/en/news/yjj2023051800999/

https://www.rivieramm.com/news-content-hub/news-content-hub/ntt-anode-energy-jera-acquire-green-power-investment-76218