ENGIE Global Energy Management & Sales (GEMS) has partnered with Nozomi Energy in a strategic alliance to speed up Japan’s renewable energy adoption. Both companies are expected to utilize both firms’ decarbonization solutions and energy risk management expertise to fuel sustainable energy projects throughout Japan.
Strategic Focus Areas
The strategic partnership will focus on several areas that will boost Japan’s renewable energy scene:
- Power Purchase Agreements (PPAs): By structuring and managing PPAs, the alliance is looking to supply renewable energy projects with stable and long-term revenues, hence spurring increased investment in the sector.
- Balancing Services: The integration of renewable energy sources onto the grid results in challenges in balancing demand and supply. ENGIE and Nozomi Energy intend to create sophisticated balancing services for the purpose of maintaining grid stability and reliability.
- Maximising the Value of Battery Energy Storage Systems (BESS): In recognition of the pivotal position that energy storage plays in renewable integration, the partnership will maximise the operation and deployment of BESS to achieve maximum energy security and efficiency.
Nozomi Energy’s Fast Growth
Nozomi Energy, founded by global sustainable infrastructure investor Actis in May 2023, has grown fast in Japan’s renewable energy space. In December 2024, Nozomi Energy purchased a big portfolio of 12 operating solar projects with an aggregate capacity of 312 MW, bringing its operational capacity to more than 400 MW within 18 months of operation. The acquisition highlights Nozomi Energy’s commitment to achieving its target of 1.1 GW of onshore wind and solar power generation by 2027.
ENGIE’s Commitment to Japan’s Energy Transition
ENGIE has been advancing aggressively to construct its presence in Japan’s energy market. The company ventured into physical power merchandising in the nation in late 2023 when it opened its Tokyo office as ENGIE Energy Marketing Japan KK (EEMJ). This entry allows ENGIE to offer tailor-made energy solutions and contribute towards Japan’s aggressive decarbonization goal.
In addition, ENGIE has also partnered with other stakeholders in the industry to consolidate Japan’s renewable energy programs. ENGIE partnered with EDP Renewables APAC in October 2024 in the creation of business concerning renewable energy in Japan, such as power trading, risk management, and energy generation and consumption optimization.
Shaping Japan’s Energy Future
ENGIE and Nozomi Energy’s collaboration is a pioneering solution to Japan’s energy system opportunities and challenges. Through the strength of their respective capabilities, the collaboration seeks to create a model for how integrated solutions in decarbonization and energy risk management can drive the take-up of renewable energy.
While Japan aims to cut greenhouse gas emissions to 46% of the 2013 level by 2030, such partnerships are central to the design of a sustainable and resilient energy future. The emphasis on PPAs, balancing services, and BESS optimization not only assists in overcoming existing energy challenges but also opens the door to innovative solutions that can be replicated worldwide
