JERA and Ryohin Keikaku Form Solar JV to Power MUJI Stores

• JERA and Ryohin Keikaku launch Muji Energy LLC, a solar JV targeting 13 MW in year one to power MUJI stores and cut CO₂ emissions by 8,000 tonnes annually.

Japanese power utility JERA Co Inc has teamed up with retailer Ryohin Keikaku Co Ltd (TYO:7453), operator of the MUJI brand, to launch a new joint venture focused on solar energy development. The company, named Muji Energy LLC, will aim to deploy around 13 MW of capacity within its first year of operation.

The initiative is designed to accelerate decarbonisation in Japan’s retail sector. Through JERA’s subsidiary, JERA Cross Co Inc, the environmental value generated by Muji Energy’s solar farms will be transferred to Ryohin Keikaku under a virtual power purchase agreement (VPPA). This mechanism will allow MUJI’s tenant stores to offset part of their electricity demand with renewable energy certificates, cutting reliance on fossil fuels.

The 13 MW of planned capacity is expected to cover approximately 20% of Ryohin Keikaku’s annual electricity use, equating to an estimated 8,000 tonnes of CO₂ emissions avoided per year. For a major Japanese retailer with a strong sustainability profile, the JV represents both a financial and environmental milestone.

Ownership of the new venture is tilted in favor of the retailer: Ryohin Keikaku holds 80% of Muji Energy, while JERA retains the remaining 20%. The structure reflects the company’s intent to take direct responsibility for its energy transition, while leveraging JERA’s technical expertise in renewable project development and grid integration.

The launch of Muji Energy aligns with a broader shift among Japanese corporates to adopt renewable procurement models such as VPPAs and onsite generation. It also complements JERA’s strategy to expand its renewable portfolio while supporting partners in meeting their decarbonisation commitments.

With this JV, MUJI is positioning itself as a pioneer among Japanese retailers in directly linking brand operations with dedicated renewable capacity, a model likely to gain traction across the region.