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Toshiba Group’s Kawasaki Head Office Virtual Power Purchase Agreement will Achieve 100% Virtual Supply of Renewable Energy

Toshiba Energy Systems & Solutions Corporation the aggregator using VPPA to accelerate adoption of renewable energy

VPPA scheme
VPPA scheme

KAWASAKI—Toshiba Corporation (TOKYO: 6502; Toshiba) and its energy business company, Toshiba Energy Systems & Solutions Corporation (ESS), have initiated a Virtual Power Purchase Agreement (VPPA) for the Smart Community Center, Toshiba Group’s business headquarters in Kawasaki, Japan, that will, alongside purchases of feed-in tariff (FIT) non-fossil certificates, ensure that the Center’s energy needs are 100% covered by electricity from renewable sources from April 2023.

Toshiba Group’s “Environmental Future Vision 2050,” a long-term vision with a global perspective, includes proactive initiatives for countering climate change and advancing the circular economy. Its “Response to Climate Change” section
specifies achieving carbon neutrality throughout Toshiba Group’s value chain by FY2050. Toward this, the Group aims to cut greenhouse gas emissions by 70% by FY2030, against the FY2019 level, by investing in energy-saving equipment in its businesses and promoting initiatives to increase the use of renewable energy sources.

A VPPA is an agreement whereby a consumer purchases the power output, known as the environmental value, of a renewable energy power producer in a location other than the consumer’s premises. That environmental value is subsequently deducted from power supplied to the consumer by another supplier. VPPA are widely seen as promoting “additionality,” investments in new renewable energy facilities driven by purchases of renewable energy, certificates and credits.

ESS*1 is the aggregator for the Smart Community Center VPPA, responsible for balancing power supply and demand at the Center. It will act as the intermediary between Toshiba and the power producer, Satsuma Green Power No. 2 Photovoltaic Power Plant*2 in Kagoshima Prefecture, and facilitate Toshiba’s purchase of the environmental value generated by the plant. The VPPA is expected to cover generation of approximately 510,000kWh of solar energy a year, equivalent to about 7.3% of the Center’s estimated total power consumption in FY2022, and to reduce CO2 emissions by some 244t/year. The Center’s remaining power needs will be virtually sourced with FIT Non-Fossil Certificates, a combination that will cover 100% of the Center’s power consumption with purchases of renewable energy.

Toshiba Group will continue to actively promote the procurement of environmental value with additionality in its renewable energy procurement. By providing high value-added services that combine its cumulative expertise as a manufacturer supporting power infrastructure with digital technology, the Group will contribute to the realization of carbon neutrality.

  • In May 2022, ESS and Next Kraftwerke Toshiba Corporation launched Renewable Energy Aggregation Service as a support service for renewable energy power producers.
  • In May 2022, ESS concluded a power purchase agreement applying the Feed-in Premium (FIP) through a special purpose company (SPC) in which Daiwa Energy & infrastructure Co., Ltd. is an investor.

Overview of the renewable power supplier

Name:   Satsuma Green Power No.2 Solar Power Plant
Location:  Satsuma Town, Satsuma District in Kagoshima Prefecture, Japan
Power plant type:  Solar FIP (Feed-in Premium)
Start date of non-fossil value procurement:  April 1, 2023
Power generation capacity:  450kW
Annual power generation forecast:  512,460kWh

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