Ryohin Keikaku, the parent company of the popular MUJI retail brand, and JERA, Japan’s largest power producer, have joined forces to establish a new joint venture, MUJI Energy. This collaboration aims to develop solar power projects that will significantly reduce emissions across MUJI’s retail estate.
In the first year, the companies plan to build approximately 13MW of solar capacity, which is expected to meet around 20% of Ryohin Keikaku’s annual electricity demand. This initiative is projected to cut CO2 emissions by about 8,000 tonnes annually. The power generated will be sold to the Japan Electric Power Exchange, while all environmental value will be transferred to Ryohin Keikaku through a virtual Power Purchase Agreement (PPA) with JERA subsidiary JERA Cross.
Ryohin Keikaku has stated that this arrangement will help it meet its target of halving Scope 1 and 2 emissions by FY2030 from a FY2021 baseline. “Now, with the creation of environmental value with additionality through the virtual PPA, we can further reduce CO2 emissions,” the company said.
For JERA, this move aligns with its broader ambition to achieve net zero emissions from its domestic and overseas operations by 2050. JERA Cross will play a crucial role in aggregating and managing the output from MUJI Energy and providing corporate decarbonisation services.
The three companies have highlighted that this joint initiative will not only expand the adoption of renewables but also support the development of a sustainable, carbon-neutral society. This collaboration could set a precedent for other retailers and energy companies looking to decarbonise their operations and contribute to global climate goals.
The establishment of MUJI Energy marks a significant step in the retail and energy sectors, demonstrating how strategic partnerships can drive renewable energy adoption and emissions reduction. As more companies set ambitious decarbonisation targets, such collaborations could become increasingly common, shaping the future of the energy sector and accelerating the transition to a low-carbon economy.