Tokyo Corp. and partners will supply Tokyu Railway with newly built solar power under a corporate power purchase agreement (PPA), covering approximately 30% of traction electricity demand.
Tokyo Corp. and partners have unveiled plans to supply Tokyu Railway with solar energy under a corporate PPA, in a move that underlines the shift towards new-build renewable sourcing in Japan’s corporate energy market.
Tokyu Railway will source electricity from approximately 98 MW (DC) of newly built solar power plants under a corporate PPA structure, with supply commencing in FY 2026 and continuing for 25 years.
The transportation and real estate group said the share of traction electricity that Tokyu Railway expects to source from newly built solar power plants under the tender framework represents the highest adoption rate among Japan’s major private railway operators, based on its own March 2026 assessment.
The projects will be developed by multiple special purpose companies (SPCs), supported by Tokyu Corp. and other partners in locations throughout Japan. The electricity will be used to support train operations on several railway lines in the Tokyo metropolitan area, including the Toyoko, Meguro, Tokyu Shin-Yokohama, Den-en-toshi, Oimachi, Ikegami and Kodomonokuni lines.
The solar power plants are expected to be commissioned in phases from April 2026 to the end of FY 2027. By FY 2028, the company expects that about 30% of its annual traction energy consumption – about 110 million kWh of 370 million kWh – will come from newly developed renewable energy sources under the PPA.
The company has been operating all train lines on 100% renewable electricity through retail electricity products since April 2022. It said the new initiative will further support the build-out of additional renewable energy capacity and strengthen its role in supporting energy infrastructure.
Tohoku Electric Power Co. and Tokyu Power Supply Co. will jointly manage electricity purchasing and supply under the agreement.
Tokyu Group and Tohoku Electric said they plan to expand cooperation on third-party corporate PPAs, solar energy development and battery storage to support the growth of additional renewable energy and contribute to decarbonization.
Japan’s railways are also testing perovskite solar energy on infrastructure. Central Japan Railway and Sekisui Chemical announced plans in January to test flexible perovskite solar panels on Tokaido Shinkansen noise barriers, signaling broader ambitions to integrate renewable generation into rail networks beyond tenders.
Japan’s corporate PPA market has rapidly evolved from niche to mainstream in recent years, with more than 500 publicly disclosed deals and more than 2.5 GW of capacity by 2025. High fossil fuel import costs, decarbonization pressures and Japan’s shift from feed-in tariff (FIT) subsidies to market-based mechanisms – including the feed-in premium (FIP) scheme – are pushing companies towards long-term purchasing. Recent deals in rail, telecom, retail and heavy industry indicate that large-scale and hybrid structures are now the focus of the market.
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