Japanese energy giant J-Power is scaling down its fossil-fuel power generation business in the U.S. to prioritize renewable energy projects globally. The company, formally known as Electric Power Development Co., plans to divest stakes in up to nine of its 11 U.S. power plants by fiscal 2024. The proceeds from these sales will support J-Power’s global decarbonization efforts and renewable energy investments.
Currently, J-Power holds a total generation capacity of 2,510 MW in the U.S., making it the company’s second-largest overseas market after Thailand. However, tightening emissions regulations and the rising costs associated with carbon capture technologies have prompted the company to reassess its investment strategy. J-Power will retain stakes in two highly efficient plants in Pennsylvania and Illinois, while it has already scheduled the sale of a 50% stake in an Oklahoma plant for June 2025.
“In developed countries, we will focus on a business model where we develop renewable energy projects, sell rights, and reinvest the proceeds into new projects,” said Executive Vice President Ryoji Sekine.
J-Power’s commitment to renewables was highlighted by its 2023 acquisition of Australia’s Genex Power for ¥37 billion ($247 million). Genex operates 150 MW of renewable energy and has ambitious plans to expand its capacity by an additional 1,300 MW, with J-Power pledging ¥40 billion to support the initiative. The company is also pursuing hydroelectric power projects in Southeast Asia, focusing on key markets such as the Philippines, Indonesia, and Vietnam.
Despite fossil fuels currently accounting for 90% of J-Power’s overseas power generation, the company is accelerating its transition to clean energy. It aims to double its overseas operating profit to ¥60 billion by 2030, driven by strategic investments in renewables.
J-Power’s shift reflects a broader trend in the global energy sector, as companies increasingly prioritize sustainable energy solutions to meet stringent environmental regulations and growing market demands for cleaner alternatives.
