Japanese retailer Ryohin Keikaku, the company behind the Muji brand, will partner with energy company JERA to launch a new solar power business. The two companies plan to establish a joint venture called Muji Energy LLC in September 2025.
Muji Energy will focus on developing solar power projects in Japan. The first goal is to reach a generation capacity of about 13 megawatts (MW) within the first year of its operation. Ryohin Keikaku will own 80% of Muji Energy. JERA will hold the remaining 20%.
JERA Cross, a JERA subsidiary, will collect the electricity and related environmental value from the solar projects. This electricity will be sold to the Japan Electric Power Exchange (JEPX), which is the country’s wholesale electricity market.
Simultaneously, Ryohin Keikaku will purchase the environmental value of the solar energy through a virtual power purchase agreement (VPPA). This means the company will claim the CO₂ reduction benefits of the solar electricity, even if it does not directly use the power. The purpose is to reduce the carbon emissions linked to its operations.
The solar power generated will not be tied to specific Muji stores or facilities. Instead, it will be added to the national grid, while the environmental impact will be used by Ryohin Keikaku in its sustainability reporting.
Outside this partnership, there are other small solar projects running in Japan. For example, the town of Higashi-Matsushima operates a solar microgrid system with a capacity of 1.1 MW. The system includes battery storage and powers public facilities during blackouts.
Another example is the “Solar Sharing” project in Chiba Prefecture. Here, solar panels are installed above farmland. Farmers continue planting crops while also earning income from solar power. The dual-use system has a capacity of 500 kilowatts (kW) and is operated by a local energy cooperative.
