Shizen Energy has confirmed it has reached 100MW of solar capacity under power purchase agreements (PPAs) with Microsoft, spread across four separate projects. Two of these facilities are already in service, while the remaining two are under construction, the company announced on October 3.
The first project, a 25MWAC/31MWDC solar plant located in Aichi Prefecture, was commissioned in February 2024. It marked Microsoft’s first PPA in Japan. Following this initial agreement, three additional projects were signed, located in the Kyushu and Chugoku regions. One unidentified plant in Kyushu is already online, while the other two remain under development.
New facilities managed by Shizen’s internal subsidiaries
Construction of one of the ongoing projects is being handled by Shizen Engineering, a wholly owned subsidiary of Shizen Energy, responsible for engineering, procurement, and construction (EPC). All plants, both operating and upcoming, will be managed by Shizen Operations, the group’s in-house operations and asset management unit.
The company did not disclose exact locations or the detailed capacity of the two remaining projects. However, data from Japan’s Ministry of Economy, Trade and Industry (METI) indicates that the projects may include a 25.9MWAC/36.3MWDC facility in Shimane Prefecture and a 20MWAC/30MWDC facility in Oita Prefecture. Both were awarded feed-in-premium (FIP) contracts at 7.94 yen per kWh during Japan’s 18th solar auction via special purpose companies affiliated with the developer.
Microsoft expands its local energy footprint
Microsoft currently operates two data centres in Japan, located in Saitama and Osaka Prefectures. In April 2024, the tech company announced a $2.9bn investment plan over two years to expand its cloud and artificial intelligence infrastructure in the country.
The development of these PPAs forms part of a broader energy procurement strategy to meet the growing demands of its digital facilities. Shizen Energy is among the most active local developers in the virtual PPA segment. In addition to Microsoft, the company has also signed a 20MWAC/30MWDC contract with Google, according to data from Japan Energy Hub.
