Octopus Energy has expanded into in Asia’s renewable-energy sector by making an investment in Japanese solar developer Yotsuya Capital.

Octopus Energy Generation has made an initial “seven-figure investment” to help Yotsuya Capital develop 250MW of new solar farms in Japan in the next five years. The investment is being made on behalf of the Sky Fund.

Toshiaki Isoi, CEO and representative member of Yotsuya Capital, said: “This funding from Octopus is transformational for us. It means we can accelerate our growth to the next level and develop much more solar across Japan in the coming years. 

“It helps us contribute to Japan’s net zero target by 2050 while also making a positive impact on the local community.”

Octopus Energy said the deal represents the firm’s first step into the Asian renewables market, adding that it already has further projects in the pipeline in Japan and across the continent. The company entered Japan’s energy market in December 2020 through a partnership with Japanese utility Tokyo Gas to provide green electricity to households.

Zoisa North-Bond, CEO of Octopus Energy Generation, said: “There’s a huge opportunity to help meet Japan’s renewables targets and accelerate its clean energy transition.

“This investment in fast-growing solar developer Yotsuya is our first step into Asian renewables - and it’s only the beginning. We’ve got big plans to scale our team in Asia, and invest in and build even more green power across the continent.”

Hajime Nakamura, CEO of Octopus Energy in Japan, said: “We are incredibly proud of the pace at which we’ve been able to grow our energy retail business here in Japan, helping drive Japan’s road to net zero.

“This decision to invest in renewable energy power development is the next logical step on Octopus’ path to increasing its footprint in Japan, and a meaningful step to accelerate the green energy revolution across the region.”

To read the latest edition of the latest IPE Real Assets magazine click here.