Canadian pension fund CDPQ, which has net assets of CAD $434bn, has acquired an 80% stake in a Japanese solar power plant.
The Inuyama project has a total solar power generation capacity of 31MW, which is enough to power the equivalent of 7,850 homes, according to CDPQ.
The move was made in partnership with Japan’s Shizen Energy as part of a CAD $460m co-investment framework announced in October 2022, when CDPQ invested CAD £186m in the company to support its growth.
Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, said: “Japan plays a decisive role in the decarbonisation of Asia and, as an experienced investor in renewable energy, we are delighted to join forces with our portfolio company Shizen Energy for this first joint investment in a solar plant.
“This transaction represents a further step in our partnership as we continue to explore more co-investment opportunities in the energy transition space.”
Both CDPQ and Shizen Energy are currently exploring further co-investment opportunities within the framework of the CAD $460m agreement.
In addition to investment in solar, in CDPQ’s 2023 annual report, the pension fund made further commitments to renewables, including battery storage.
For instance, the annual report highlighted a CAD $200m investment in convertible debt in Swedish battery developer Northvolt AB to contribute to completing the Northvolt Six project, a fully integrated battery plant in Saint- Basile- le-Grand and McMasterville in Québec.
Alongside this, the Canadian pension fund also made an additional investment in Boralex, a renewable energy company specialised in wind, solar, hydroelectricity and storage. This allocation brings CDPQ’s stake in the company to 15%.
