Shizen Energy Secures $480 Million Investment From CDPQ

Japanese renewable energy project developer Shizen Energy has received a ¥20 billion ($135 million) investment from investment group CDPQ. Both companies have also agreed to a co-investment framework with a potential investment of ¥50 billion (~$339 million) by CDPQ.

This investment will allow Shizen Energy to accelerate its ongoing renewable power plant development activities, business enhancement initiatives in energy digitalization, and human capital expansion in key markets. Following this transaction, CDPQ has obtained a seat on the Board of Directors of Shizen Energy.

“This transaction in Japan is an important milestone in the deployment of CDPQ’s long-term Asia-Pacific infrastructure strategy. Japan has a crucial role to play in the decarbonization of Asia, and as an investor with deep experience in renewable energy, we are delighted to be working with the Shizen team to deliver on their ambitious plan for the energy transition,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.

In Japan, Shizen Energy develops renewable energy projects, including ground and roof-mounted solar projects, agri-solar power projects, onshore and offshore wind projects, small-scale hydroelectric power projects, and biomass power projects.

In 2019, the company started offering micro-grid and VPP construction, smart charging and discharging services for EVs, and other services through its self-developed EMS (energy management system). Shizen Energy has been involved in more than 1 GW of renewable energy generation in Japan and overseas.

According to Mercom’s recently released 9M and Q3 2022 Solar Funding and M&A Report, in 9M 2022, venture capital (VC) funding activity rose 150%, with $5.5 billion in 72 deals compared to the $2.2 billion raised in 39 deals in 9M 2021.

Earlier this month, ecoligo, a fully financed solar-as-a-service solutions provider for businesses in emerging markets, raised €10 million (~$9.83 million) in a Series A funding round. The investment was provided by a new investor FRV-X, a venture division of Fotowatio Renewable Ventures (FRV), a global sustainable energy developer and power producer.