JERA, Japan's largest power generator, is set to achieve its target of holding five gigawatts (GW) of renewable energy assets by 2025, according to Chairman Yukio Kani. This comes after the company's recent acquisitions of two energy firms. In March, JERA agreed to purchase Parkwind, Belgium's leading offshore wind platform, and this month, it announced a joint deal with Nippon Telegraph and Telephone (NTT) to acquire local renewable energy company Green Power Investment.
During a news conference, Kani stated that these acquisitions would increase JERA's operational and under-construction renewable assets to 3.1 GW, with a pipeline of over 10 GW. As a result, JERA solidifies its position as one of Asia's prominent players in the renewable energy sector. Kani expressed confidence that the company's 5 GW goal was well within reach.
In Japan, companies are striving to expand their renewable energy shares due to the government's commitment to achieving carbon neutrality by 2050. Eneos Holdings, Japan's largest oil refiner, also recently announced plans to increase its renewable energy capacity. The company aims to reach 6 to 8 GW of renewable energy, primarily from solar and wind, by 2040, a significant increase from its current capacity of less than 1 GW.
While JERA focuses on renewable energy, it is also a major purchaser of liquefied natural gas (LNG). In the previous fiscal year, JERA purchased a record 7 million tonnes of LNG on the spot market, representing a quarter of its total procurement volume of 28 million tonnes. This figure reflects an increase from the 4.5 million tonnes purchased on the spot market in the previous year.
JERA's President, Hisahide Okuda, described the situation as an “emergency,” referring to the surge in spot prices caused by the Ukraine conflict and supply disruptions from Russia's Sakhalin-2 LNG project. However, Okuda highlighted the company's successful risk management, attributed to its fuel trading unit, which generated substantial profits through significant business inquiries from European players.
Despite the recent decline in Asian spot LNG prices, Okuda emphasized the unpredictable nature of the market. He pointed out the potential increase in demand from China after the relaxation of zero-COVID regulations and the risk of a colder winter affecting LNG consumption.
