Innovative Virtual PPA Contract for Sustainable Solar Farming in Japan

JA Mitsui Lease Partners with Nomura Real Estate for Virtual PPA

On October 28, 2025, a collaborative effort between Nomura Real Estate and Chabatake Solar Corporation has made headlines with the signing of a 20-year Virtual Power Purchase Agreement (PPA) for a solar power plant in Shizuoka, Japan. This plant, set to produce 1.8 MW (DC) of renewable energy, marks a significant step toward the dual goals of expanding renewable energy and promoting sustainable agriculture in the region.

Chabatake Solar Corporation, a subsidiary of JA Mitsui Lease, was established with investments from multiple companies, including JA Mitsui Energy Solutions, Norinchukin Bank, Ryutsu Service, and TEA ENERGY. These partners aim to establish a successful model that integrates agricultural practices with solar power generation, showcasing how these two fields can coexist and support one another.

Project Overview

The solar power plant will be integrated into tea cultivation, allowing both agricultural production and energy generation to occur simultaneously. Under the Virtual PPA, Nomura Real Estate will purchase all the environmental value derived from the renewable energy generated, thus contributing to the local economy by enhancing the income of farmers and maintaining the agricultural infrastructure in the area. A portion of the purchase price will be diverted to agricultural commission fees and land rent, thereby benefiting the local farming community. This initiative is the first of its kind for Chabatake Solar and marks Nomura Real Estate's entry into Virtual PPAs.

A 1.8 MW (DC) solar facility will provide enough power for approximately 550 households annually, emphasizing its potential impact on local energy and agriculture.

Addressing Challenges in the Tea Industry

The Japanese tea industry, especially in Shizuoka Prefecture, has been facing decline due to reduced consumption, falling prices, and challenges such as aging farmers and a lack of successors. The project aims to reverse these trends by capitalizing on the booming demand for matcha in international markets, particularly in health-conscious demographics in Europe and America. By using solar power setups in tea gardens, the project not only provides shade for tea plants but also helps to cultivate these high-demand tea varieties.

The partnership among the four investor companies ensures comprehensive support for tea farmers through all stages of production, from cultivation to securing distribution channels.