Mitsubishi HC Capital and Brookfield Asset Management have announced a significant agreement to establish a joint venture (JV) company dedicated to the acquisition and operation of contracted renewable energy assets throughout Europe. This new renewable energy JV represents a strategic move by both firms to bolster their presence in the sustainable energy sector.
The foundational portfolio for this new renewable energy JV comprises approximately 570MW of installed capacity. This initial set of assets includes a diverse mix of wind, solar, and battery energy storage facilities strategically located across Finland, France, Ireland, Spain, Sweden, and the United Kingdom. The equity value of this seed portfolio is estimated to be close to €400 million (approximately $461 million).
A key feature of the assets forming the initial portfolio is their operation under long-term power purchase agreements (PPAs). These agreements provide a stable revenue stream, with an average of approximately ten years remaining on their terms. The companies highlighted that this contractual structure is specifically designed to generate consistent cash flow and income, offering resilience across various market conditions.
The newly formed renewable energy JV will operate as a privately held joint venture. Beyond its initial European focus, the venture is actively exploring further acquisition opportunities in both Europe and Australia. The strategy for future purchases will continue to emphasize stabilised, operating renewable energy assets that are underpinned by durable commercial agreements, mirroring the approach taken with the current portfolio.
Mitsubishi HC Capital Global Environment & Energy Department general manager, senior corporate officer Hayato Shinada said, “This initiative is positioned as a growth investment under the ‘Invest in high-profitability business domains’ of our business portfolio restructuring strategy in our Medium-term Management Plan for FY2026 [fiscal year 2026]–FY2028 (“2028 MTMP”).
“By combining Mitsubishi HC Capital’s financial and investment expertise with Brookfield’s asset management capabilities, we will build and scale our business platform to deliver reliable and sustainable operations,” he added.
