Japanese financial services company Tokyo Century today announced that it will co-invest in the operation of solar and onshore wind power plants in Great Britain.
Through an agreement with asset management funds under Octopus Energy Group of Octopus Energy Group, Tokyo Century will acquire a 49% stake in the 67MW Breach solar power plant in England and a 49% stake in the 46MW onshore Crossdykes wind power plant in Scotland.
The remaining interests are held by Octopus Renewables Infrastructure Trust plc (ORIT) and Octopus Renewables Infrastructure SCSp (ORI SCSp) respectively.
ORIT acquired the Breach solar power plant in 2022with the site costing approximately £50 million to purchase and develop. The following year, in March 2023, it has signed a ten-year power purchase agreement (PPA) with British food distributor Iceland Foods, to power 150 of its locations with an estimated 64 GWh of solar energy.
The power generated at the Cambridgeshire solar site is estimated to meet 14% of Iceland’s electricity needs at the relevant stores.
In April last year, ORIT has entered into a power purchase agreement (PPA) with Sky UK for the Crossdykes wind farm in Scotland, of which ORIT acquired 51% in 2022.
The PPAs of both projects were a selling point for taking stakes in Tokyo Century. The company said it views Octopus Energy as an “optimal operating partner” for its UK renewable energy business, as part of its wider European expansion plan.
Tokyo Century entered the UK solar market in early 2024 acts as co-investor of Schroders Greencoat in the acquisition of 53 solar power plants from Toucan Energy. The £700 million deal secured a combined capacity of 513.5 MWp at sites in England, Wales and Northern Ireland.
Tokyo Century’s co-investment took place in 34 of the 53 factories, with a combined capacity of 303 MW.
In November this year it made its first UK onshore wind energy entry by taking a stake in four power stations owned by UK infrastructure fund manager Equitix.
The company’s other projects are mainly in Japan, and the company also has a stake in an Italian solar project.
