Tokyo Century has established a joint venture with Downing to develop solar power projects throughout the United Kingdom. The partnership aims to achieve a cumulative capacity of around 500 megawatts.
This marks Tokyo Century's first venture into managing the entire lifecycle of solar power plants outside Japan, encompassing construction and operation phases. The joint venture plans to build a portfolio distributed across approximately ten sites by the year 2028.
It will concentrate on pre-construction solar installations that have already obtained necessary grid connections and permits. These projects are anticipated to generate stable, long-term revenue streams through the UK's contract for difference scheme.
The UK Government has detailed plans to significantly increase its solar capacity by 2030 as part of a broader strategy to reach net-zero carbon emissions by 2050. Tokyo Century considers the UK a key market for expanding its international renewable energy presence.
Downing, an investment and development specialist focused on renewable energy, will contribute its expertise in project development, asset management, and operational strategies within the UK and northern Europe. The collaboration will involve joint decision-making on asset acquisitions, project financing, and divestment strategies.
By utilizing Downing's established capabilities in solar asset management, Tokyo Century intends to strengthen its business operations in Europe. For Tokyo Century, this joint venture represents a major step forward in advancing its European renewable energy strategy. The company has previously invested in high-quality operational assets across the continent.
This new phase will enable Tokyo Century to actively engage in construction and development roles, expanding its activities within the renewable energy sector. The joint venture seeks to balance stable revenue generation with growth potential while supporting the deployment of clean energy solutions and decarbonization efforts.
In terms of strategic importance, Tokyo Century plans to use this partnership to develop expertise in risk management and governance related to power plant construction and operations. This is intended to substantially enhance its international business management capabilities.
By participating equally with Downing in managing the venture, Tokyo Century aims to speed up the creation of a diversified portfolio that aligns with both stable earnings and growth prospects.