Takashimaya Co., Ltd. , Tokyu Land Corporation, ReENE Co., Ltd. and DIGITAL GRID Corporation announced that they will launch the first demonstration of a large-scale off-site corporate PPA scheme in Japan using short-term contracts. The scheme aims to overcome the issue of long-term contracts, which has been one of the impediments to the expansion of renewable energy PPAs. The contract period is two years from April 2023 to April 2025.

The renewable energy power generated by a non-FIT solar power plant of approximately 4 MW (rated capacity) owned and developed by Tokyu Land Corporation will be supplied to the Takashimaya Yokohama and Takasaki stores through ReENE, a wholly owned subsidiary of Tokyu Land Corporation, utilizing the Digital Grid Platform (DGP) operated by DIGITAL GRID Corporation, a next-generation power trading system that enables direct trading of power and environmental values between the generators and customers of the Digital Grid.

The non-FIT power plants include a 379 kW solar sharing (agricultural solar power generation) plant in Higashimatsuyama City, Saitama Prefecture, which started operation in December 2022, and a small-scale solar power plant totaling 3.7 MW that will gradually begin operation from May 2023 in the Kanto region. Solar sharing will enable farmers to stabilize their farming by earning income from both farming and land rent from solar sharing, while at the same time promoting renewable energy in harmony with nature, without the need for new deforestation.

Through this demonstration, the four companies will establish a different procurement method from conventional methods, and will consider introducing additional PPAs to other Takashimaya stores in the future. In order to expand the non-FIT PV business, renewable energy developers and others are exploring various forms of PPA schemes to meet the needs of customers.

Reference: Short-term Corporate PPA Demonstration Initiatives Launched to Promote Renewable Energy Supplying Solar Power to Takashimaya Yokohama and Takasaki Stores (Japanese): https://www.tokyu-land.co.jp/news/2023/001565.html