Energy firm Perennial Power has partnered with CEP Solar to establish a joint venture (JV) focused on renewable energy development in Virginia.

The collaboration will prioritize solar and battery storage projects, with construction on the 1.5GW portfolio planned for late 2025.

Perennial Power, part of the Sumitomo Group's renewable energy efforts, currently operates five projects with a combined generation capacity of 640MW. It aims to expand this to 1GW by 2030.

CEP Solar is a Virginia-based solar and storage developer. It currently has 20 solar projects in development across the state and will use the JV as a vehicle to support the construction and energization of its project portfolio.

"This partnership with Perennial aligns with our core values and will accelerate our ability to deliver a scale-diversified portfolio, which consists of both solar and battery storage projects, providing long-term economic and environmental benefits for our partnering communities, landowners, and customers across the Commonwealth," said Tyson Utt, co-founder of CEP.

Virginia’s rapidly growing data center market is driving heightened demand for renewable energy, especially as the state works toward ambitious clean energy goals.

Companies are turning to renewable energy solutions as they seek to lower their carbon footprints.

Dominion Energy, which plays a critical role in powering the state's data centers, connected 15 new facilities with a combined capacity of 933 MW in 2023 alone. Many of these new connections are part of renewable energy agreements to support the state’s ambitious clean energy targets.​

This shift comes as Virginia works to meet its own sustainability goals under the Virginia Clean Economy Act, which requires 100 percent carbon-free electricity by 2045.

As data centers expand in the state, there is increasing pressure for sustainable energy solutions to meet rising power needs.