In October 2023, Shizen Energy Inc. signed a 20-year virtual power purchase agreement (VPPA) with Microsoft (MSFT stock) to provide renewable energy from a 25 MWac solar farm in Inuyama City, Aichi Prefecture. As with other global deals, this VPPA helped Shizen Energy secure funding for the Inuyama project.
Now the company has recently announced an expanded partnership with Microsoft. It currently has 100 MW in Renewable Energy Purchase Agreements across four solar projects in Japan.
Building on this success, Microsoft signed three additional 20-year agreements for solar plants in Kyushu and Chugoku, further advancing both companies’ renewable energy goals.
Rei Ushikubo, Executive Officer of Shizen Energy, said,
“Following the Inuyama Project, we are honored to have signed long-term agreements with Microsoft for several new projects. We believe that securing financing from domestic and international financial institutions for these projects is proof of the growing presence of Renewable Power Purchase Agreements in the Japanese market. We will continue to prioritize our power purchase agreement business to support our customers’ decarbonization efforts.”
Shizen Energy Delivers Efficiency Across Four Solar Plants
Shizen Energy has already started operations at one Kyushu plant. The remaining projects are under construction, including its site and wholly-owned EPC subsidiary, Shizen Engineering Inc. All four projects will operate under Shizen Operations Inc., which manages asset operations and maintenance.
The company is also handling project coordination, financing, and asset management, while its subsidiaries manage EPC and O&M. This integrated approach allows the company to deliver large-scale projects efficiently and reliably.
Earlier, it was revealed that the Inuyama Solar Power Plant stands as the largest single-asset solar project in Japan to reach financial close under a VPPA. The project had received ¥10.9 billion in non-recourse financing from Societe Generale, marking the first international funding for a Japanese VPPA-linked renewable project.
Inuyama City Solar Project
Global Expansion and Innovation
Shizen Energy aims to accelerate the global shift to renewable energy under the motto “We take action for the blue planet.” The company has expanded projects to Southeast Asia and Brazil and introduced advanced energy technologies, including microgrids, virtual power plants (VPPs), and smart EV charging systems through its proprietary EMS.
It has generated more than 1 GW of renewable energy worldwide and earned recognition as Forbes Japan’s top startup in 2024. With these milestones, the company continues to lead both domestic and international corporate renewable markets.
Boost to Microsoft’s 100% Renewable Energy Goal
This deal is Microsoft’s first renewable energy purchase in Japan. And these REPAs help Microsoft move toward 100% renewable energy for its operations by 2025.
By adding clean energy to Japan’s electricity grid, the tech giant is contributing to both corporate sustainability and grid decarbonization.
Adrian Anderson, General Manager, Renewable and Carbon Free Energy at Microsoft, had said,
“Shizen Energy’s expertise and presence in the Japanese market is enabling our first renewable energy purchase in Japan and it’s great to see near-term supply for our 100% renewable energy goal. A commercial structure like this is important to promoting grid decarbonization in the country.”
Globally, to date, Microsoft has contracted over 34 GW of renewable capacity across 24 countries, up from 1.8 GW in 2020, as highlighted in its 2025 sustainability report.
Last year, it further diversified its portfolio and added 19 GW of new renewable energy across 16 countries. Key expansions included:
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Brookfield Renewable Energy Framework – Delivering over 10.5 GW in the U.S. and Europe over the next five years.
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Wisconsin PPA with National Grid Renewables – A 250 MW agreement supporting a growing datacenter region, paired with a $15 million community fund for environmental resilience.
Some other global projects included a 415 MW solar facility in Germany, a 48.8 MW wind project in Ireland, and a 36 MW solar plant in Poland. These projects showcase our commitment to expanding clean energy capacity across diverse markets.
These investments allow Microsoft to expand renewable markets worldwide and support grid decarbonization in all regions where it operates.
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Japan’s Renewable Energy Outlook
Data shows that Japan aims for 36–38% renewables in its electricity mix by 2030, but slower project development and rising electricity demand keep the share below 30%. Nuclear restarts and decommissioning of old thermal plants have helped reduce emissions by nearly 5% from 2023, reaching the lowest levels since 2015.
Most significantly, agri-solar projects, combining solar generation with farmland, are emerging as a key growth area. Japan has solar potential of 1,465–2,380 GW, far above the current installed capacity of 74 GW. Interestingly, local developers are aggregating small projects and securing financing, creating scalable, sustainable solutions for corporate PPAs.
Shizen Energy’s REPAs with Microsoft show the growing impact of corporate renewable procurement. The agreements attract international financing, provide long-term revenue certainty, and accelerate renewable deployment. Corporate PPAs help companies meet energy goals while supporting broader grid decarbonization.
Shizen Energy continues to expand solar, wind, biomass, and innovative energy solutions. Its integrated development, construction, and operations model ensures projects are delivered efficiently and effectively.
Together, Microsoft and Shizen Energy are shaping Japan’s corporate renewable energy market and proving that sustainable, commercially viable solutions are achievable.
