In a significant expansion of the United Kingdom’s renewable energy infrastructure, Tokyo Century Corporation and investment manager Downing LLP have officially formed a joint venture (JV) to develop a massive 500MW solar power portfolio. The partnership, finalized on January 14, 2026, involves a capital commitment exceeding £300 million. This collaboration represents Tokyo Century’s first full-scale entry into the construction and development phases of the UK solar market, signaling a deepening of the industrial ties between Japan and the United Kingdom as both nations race toward their respective Net Zero targets.

A Milestone for UK-Japan Energy Cooperation

This partnership arrives at a critical juncture for the UK’s energy policy and was met with high-level governmental praise. Sir Chris Bryant, the UK Minister for Trade, highlighted the deal as a prime example of the modern Industrial Strategy in action. By bringing together Japanese financial strength and British technical expertise, the venture is positioned to drive significant economic growth while supporting the industries of the future. For Tokyo Century, the move is a strategic evolution from being a passive investor in operational assets to becoming an active participant in the high-value construction and development stages of the renewable energy lifecycle.

Tokyo Century & Downing Solar JV: Factsheet

Partners: Tokyo Century (Japan) and Downing LLP (UK)

Portfolio Capacity: ~500 MWac (across roughly 10 sites)

Total Investment: £300 Million+

Project Stage: Ready-to-build (RTB) utility-scale solar

Revenue Model: 15-year Contracts for Difference (CfD)

Operational Timeline: Sequential commissioning between 2027 and 2028

Target Completion: Full portfolio online by 2028

Strategic Goal: First full-lifecycle management for Tokyo Century outside Japan

Climate Impact: Supports the UK’s Net Zero 2050 and 2030 Clean Power targets

Strategic Focus on Shovel-Ready Assets

The joint venture is specifically designed to accelerate the deployment of clean energy by focusing on “ready-to-build” utility-scale solar PV projects. These are sites that have already cleared the initial regulatory hurdles, including the acquisition of essential planning consents and grid connection agreements. The portfolio will be sourced from a combination of Downing’s internal development pipeline and strategic acquisitions from third-party developers. By targeting assets with connection dates already earmarked for 2027 and 2028, the partnership ensures a rapid transition from capital deployment to commercial operation, providing a streamlined path to grid integration.

Securing Revenue Through the CfD Scheme

A core pillar of the venture’s financial resilience is the utilization of the UK Government’s Contract for Difference (CfD) scheme. This mechanism serves as a primary driver for renewable investment by providing a guaranteed and inflation-linked “strike price” for the electricity generated. By mitigating the risks associated with the volatility of wholesale energy markets, the CfD framework allows the JV to secure long-term, stable revenue streams. This fiscal security is essential for managing the inherent risks of large-scale construction while delivering consistent, predictable returns to the institutional stakeholders involved in the £300 million program.

Technical Expertise and Operational Management

The synergy between the two firms extends deep into the operational layer of the project. Downing, which manages over £900 million in renewable assets, will leverage its specialized team of 90 professionals to handle project sourcing, construction oversight, and long-term asset management. Meanwhile, Tokyo Century will play an equal role in high-level management decisions, including asset acquisitions, project financing, and potential divestment strategies. This hands-on involvement allows the Japanese firm to cultivate internal expertise in risk management and governance for international power plant construction, a key objective of its current Medium-Term Management Plan.

Supporting the UK’s Net Zero Ambitions