The Japanese market for Power Purchase Agreements (PPAs) expanded last year while also adding more variety in power sources and concluding deals that offered more electricity capacity.

The number of publicly disclosed PPA deals tracked by Japan NRG in 2024 rose 18% to 226, compared to a year earlier. This brought the total capacity covered by deals over the past two years to around 1.68 GW, our data show. We forecast that the rest of the decade is likely to see further but uneven growth due to bottlenecks in supply and grid constraints.

We began tracking publicly announced PPA deals from calendar year 2023. Our database collects information on details divulged by the counterparties or the government, and contains parameters such as electricity volumes, forecasted CO2 savings, type of contract, and the sector background of buyers and sellers. It does not include contract prices as these are not shared by the parties publicly. However, based on conversations with market players and references to additional sources, we have included a section below that gives an outline of the price ranges and numbers based on anecdotal / market average evidence.