Mubadala unveils first renewable energy investment in Japan

Abu Dhabi’s Mubadala Investment Company (Mubadala) has made a significant cornerstone investment in PAG’s Asia Pacific renewable energy platform, PAG REN I, aimed at providing solar power to corporations throughout Japan.

Leveraging PAG’s extensive experience in the Japanese real estate sector and the expertise of its renewable energy team, PAG Renewables, PAG REN I will focus on developed Asia Pacific economies, particularly Japan.

The platform will support Japan’s ambitious goal to install 108 GW of solar capacity by 2030.

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Hammad Rahman, head of Asia Pacific – Traditional Infrastructure at Mubadala, said: “Mubadala is excited to extend our presence in Japan and the wider Asia Pacific Region alongside PAG, with our first investment in the country’s rapidly growing clean energy sector.

“This investment will help reduce carbon emissions and reliance on imported fuels, aligning with Japan’s domestic and international emission reduction targets. Providing sustainable energy solutions to the corporate and industrial sectors is a key thematic for our infrastructure strategy, and we are pleased to execute this theme in a major global economy such as Japan.”

Mubadala aligned with supporting decarbonisation

PAG REN I will support large corporations in Japan as they transition to clean energy, utilising Japan’s corporate power purchase agreement framework to facilitate long-term electricity purchases directly from renewable energy suppliers.

Japan has the second-highest number of organisations committed to 100 per cent clean energy sourcing, following the US, under the RE100 initiative.

“We are pleased to partner with Mubadala on this major investment in renewable energy infrastructure,” said J-P Toppino, co-founder and president of PAG. “Japan has a significant commitment to increasing solar power generation, and we are proud to support the country’s ambitious goals. We look forward to participating in Asia’s energy transition.”

The investment will not only accelerate Japan’s decarbonisation efforts but also enhance the country’s energy security by reducing dependence on imported energy and boosting domestic energy sources.

Mubadala’s investment in PAG REN I underscores its growing portfolio of renewable and clean energy projects across Asia, Europe, and North America.

In 2022, Mubadala invested in Tata Power’s renewables platform in India and acquired a stake in Skyborn Renewables, the world’s largest private offshore wind developer, demonstrating its commitment to supporting global renewable energy initiatives.