Investment group CDPQ has announced a 20 billion yen (US$135 million) investment in Tokyo-based renewable energy developer Shizen Energy.

The two parties have also also agreed on a co-investment framework, which will involve potential CDPQ investments amounting to 50 billion yen.

The investment will allow Shizen Energy to accelerate ongoing renewable power plant development, business enhancement initiatives in energy digitalization, and human capital expansion in key markets. Following the transaction, CDPQ has obtained a seat on the company’s board of directors.

In Japan, Shizen Energy will continue to develop a variety of renewable energy sources, including ground and roof-mounted solar power, agri-solar power, onshore and offshore wind power, small-scale hydroelectric power, and biomass energy. The company will also conduct further research and development on its proprietary energy management systems to more effectively utilize renewable energy.

For its overseas projects, Shizen Energy will continue to accelerate on-site and off-site power purchase agreements in Southeast Asia and Brazil and seek out large-scale solar and wind projects in partnership with leading local companies.

"This transaction in Japan is an important milestone in the deployment of CDPQ's long-term Asia-Pacific infrastructure strategy," says Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ. "Japan has a crucial role to play in the decarbonization of Asia, and as an investor with deep experience in renewable energy, we are delighted to be working with the Shizen team to deliver on their ambitious plan for the energy transition."

Founded in June 2011, Shizen Energy is involved in the development, financing, and asset management of renewable energy plants including solar, wind, small-scale hydroelectric, and biomass. Since 2016, the company has also been focusing on overseas operations, expanding its development and power generation projects in areas such as Southeast Asia and Brazil.

In 2019, the company also entered the energy tech business, offering micro-grid and virtual power plant construction, smart charging and discharging services for EVs, and other services through its self-developed energy management system. The group has been involved in more than 1GW of renewable energy generation in Japan and overseas.

CDPQ, headquartered in Quebec City with its main business office in Montreal, is a global investment group managing funds for public pension and insurance plans. It is active in major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, its net assets totalled C$391.6 billion (US$286 billion).