Climate and Clean Tech | May 10, 2023

UK-based Actis launches $500 million Japan-focused clean energy arm

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, May 10 – London-based global sustainable infrastructure investor Actis launched a Japan-focused clean energy unit out of its fifth energy infrastructure fund, a $6 billion global-focused fund seeking to expand access to power in markets comprising over 80% of the world’s population.

Called Nozomi Energy, it will buy onshore wind and solar energy generating assets and companies to support Japan’s 2030 target to slash emissions nearly in half from 2013 levels. “Japan has challenging but critical emission reduction targets and Nozomi will play an important role in enabling the country to achieve them,” said Actis’ Jun Ohashi.

Nozumi aims to “have a positive impact both in terms of decarbonization and by creating local jobs and supporting communities, while making superior returns for our global investors,” Ohashi said. Nozumi will use Actis’ impact score framework to define and measure outcomes, as well as a transition tool to identify decarbonization opportunities.

Nozomi (Japanese for “hope”) is targeting 1.1 gigawatts in power generation from onshore wind and solar by 2027.

Clean energy portfolio

Nozomi’s first investment is the acquisition of renewable energy developer Hergo Japan Energy Corp., which has a portfolio of solar and onshore wind projects totaling roughly 230 megawatts. Hergo Japan Energy’s former CEO, Minoru Saito, will remain with the company as vice-chairman and join Nozomi as head of wind. Actis opened its Japan office in March last year.

Low-carbon transition

Japan could source 90% of its power from clean electricity by 2035, due to a decline in the cost of solar, wind and battery cost, a recent study by the Lawrence Berkeley National Laboratory shows.