Nozomi Energy reaches financial close and starts build on 196 MWh BESS in Japan

Tokyo-based renewable energy developer Nozomi Energy has reached financial close on a 50 MW / 196 MWh battery energy storage system (BESS) in Nishihata, Nozu Town, Oita Prefecture, Japan. Nozomi Energy secured non-recourse financing from Aozora Bank, although the amount has not yet been disclosed. 

The Nozu project was awarded under Japan’s FY2023 long-term decarbonization auction, giving it a 20-year CPI-linked capacity payment. Construction is expected to commence immediately, with commissioning targeted for Q3 2028 according to Nozomi Energy.

“Financial close on the Nozu project is an important milestone for Nozomi Energy, demonstrating our ability to originate, develop and finance complex renewable energy infrastructure in Japan. It also marks the next stage of our growth into flexible infrastructure. We are grateful to Aozora Bank for its strong support on this financing and to the broader banking community for its continued support as we scale Nozomi’s platform,” said Jose Antonio Millan Ruano, president and CEO of Nozomi Energy.

Nozomi Energy, supported by London-headquartered global investor Actis, was established in May 2023 and has assembled a portfolio of roughly 900 MW of solar, onshore wind, and BESS, including 521 MW in operation. The company expects to scale to 1.1 GW by 2027.

Alongside Nozu, Nozomi Energy anticipates another 50 MW BESS will reach financial close later this year. 

“We are very pleased with Nozomi Energy’s achievement of its latest growth milestone. It has made tremendous progress in the past three years toward its ambition of becoming a leader in the Japanese renewables market,” said Tareq Sirhan, head of energy for North Asia at Actis.