An ambitious target of 22-24 per cent renewable energy by 2030 was introduced and a feed-in tariff was implemented to support the development of green projects. The feed-in tariff has been revised over time to reflect improved efficiency and reducing costs, and the scheme remains successful.
We have established a development platform, Acacia Renewables, to develop solar, onshore and offshore wind and biomass projects in Japan. Both directly and through local partnerships with leading market participants, including Maeda Corporation and three of the five largest global panel manufacturers, we are progressing a pipeline of wind and solar projects in excess of 1GW.
We are working with communities to ensure local benefits from the development of our projects and to ensure safe and responsible operation of our projects for the long term. Our development team in Japan includes engineers, developers, procurement specialists and construction and operating supervisors.
We are at the forefront of opening up new sources of capital to fund green energy projects. In 2017, we were appointed as Joint Lead Manager and Joint Bookrunner on the IPO of Canadian Solar Infrastructure Fund (CSIF), Japan’s largest listed infrastructure fund to date. The listing of CSIF provided a unique opportunity for retail and international capital to invest in the Japanese green energy sector.
By the end of 2017, Japan had become the world’s second largest solar market, with installed capacity of 48.6GW, equivalent to five per cent of its annual power generation. Macquarie’s portfolio of solar farms totals more than 300MW in potential installed capacity - enough to power around 93,000 homes. When we incorporate this with our broader renewable energy portfolio in Japan, the partnerships we have formed with local development companies is expected to generate a pipeline of more than 1GW, enough electricity to power around 475,000 households.
Through our holistic approach to solar energy and our ability to draw on expertise in infrastructure and renewables more broadly, we’re helping to build a thriving green industry in Japan.