DNV Supports Actis in Inaugural Acquisition of Japan-Focused Renewables Fund

DNV, a global independent energy expert and assurance provider, provided advisory services to Actis GP LLP, a leading sustainable infrastructure investor, for their new Japan-focused renewables infrastructure fund. Actis made their inaugural acquisition through the purchase of HERGO Japan Energy’s renewables portfolio, which became the first investment and seed asset for Nozomi Energy, a newly launched USD 500 million Japan-focused renewables investment platform by Actis in May 2023.

DNV’s due diligence approach for Actis focused on identifying potential technical and related commercial risks that could affect the revenue generation of power projects throughout their operational lifetime. Their cross-regional project team collaborated closely with Actis, conducting qualitative and quantitative assessments of the technical risks. DNV also evaluated the impact of issues identified during site visits and project document analysis and provided recommendations to mitigate associated risks. Additionally, DNV conducted an independent energy production assessment for HERGO Japan’s onshore wind farms based on data collected from on-site meteorological masts and vertical LiDARs.

Liam Smith, Director of Energy Operations at Actis, praised DNV’s diligent, fact-based approach to Energy Yield Assessments and expressed satisfaction in having access to such capabilities along with deep local insights as Actis ventured into a relatively new market.

To assess the wind resources, DNV applied its worldwide reference methodology to determine the energy potential of the sites and identify associated technical risks, crucial for Actis to make informed investment decisions. The approach was tailored for each site, considering the type of wind data available for analysis and the required accuracy levels. The chosen analytical tools and approaches included wind data gathering, long-term assessment, vertical extrapolation, flow modeling, and evaluation of aerodynamic interactions and energy loss factors.

Brice Le Gallo, Vice President and Regional Director APAC, Energy Systems at DNV, expressed delight in supporting Actis with due diligence for their ambitious Nozomi Energy plans, contributing to Japan’s energy transition leveraging onshore and offshore wind power.

Yukinobu Uchida, Market Area Manager Renewables, Japan, Energy Systems at DNV, stated that it was a great pleasure to assist Actis in their strategic investment through technical due diligence services, ensuring DNV’s high-quality standards were maintained despite a challenging timeframe. DNV looks forward to supporting Japan’s goal of achieving net-zero emissions by 2050 through involvement in more transactions like this.