NTT Group is focusing on energy-related business as one of its new growth areas. At the heart of this is NTT Anode Energy, founded in 2019. In addition to consolidating NTT Group's energy-related businesses, in August 2023 it established the con Green Power Investment (GPI, Minato, Tokyo), a renewable energy developer. We asked Teruyuki Kishimoto, President of NTT Anode Energy, about the future of NTT Group's energy business.
NTT Anode Energy President Teruyuki Kishimoto talks about the background of the acquisition of GPI (Photo: Yasushi Kato)
--NTT Group recently invested about 250 billion yen to buy GPI, giving the impression that it is focusing on energy business with a focus on renewable energy.
"In 2021, NTT announced a new environment and energy vision to achieve carbon neutrality (virtually zero greenhouse gas emissions) by FY 2040."
"In FY 2040, we predict that NTT Group-wide power consumption will nearly double compared to FY 2013 due to increased demand at data centers and other facilities. Our plan is to reduce this consumption by about half by introducing IOWN (a technological solution that can achieve low power consumption) and achieve carbon neutrality using renewable energy. create to create the other half."
“The amount of renewable energy needed in 2040 will actually be equivalent to the current electricity consumption of the entire group. It would be about 9 billion kilowatt hours, or the electricity consumption of three to four nuclear power plants.” electric Factory. The size is almost the same."
''Initially, we want to supply about half of the renewable energy we need by purchasing electricity that has achieved 'fossil-free certification' (indicating that it is not derived from fossil fuels) and secure the other half by producing our own renewable energy. I'm thinking."
"However, in the future, the price of electricity that has achieved fossil-free certification is expected to increase. So we decided that it would be safer to have our own renewable energy source so we bought GPI."
--The acquisition of GPI also aims to consistently achieve carbon neutrality for NTT Group.
"That's right. GPI has about 5 billion kilowatt hours of renewable energy. If we add NTT Anode Energy's 2.69 billion kilowatt hours of renewable energy to this, the entire NTT Group will need it from 2030. Securing around 8 billion kilowatt hours of renewable energy is now in our sights."
"To develop renewable energy sources takes a lot of time. In the case of wind power generation, it takes 1 to 2 years to select the location, then 6 to 7 months to develop and understand clear understanding of local people." it will take a year. Then we'll spend one to two years on construction and other things before we can start operations."
“GPI is promoting these community-based activities and we are also working on urban development based on renewable energy. This is also a strength of GPI and we are moving towards a sustainable cycle, in line with our vision of creating a model society. ”
--On the other hand, some have pointed out that the GPI buyout price was an attempt to achieve a high price.
"We have thoroughly examined each renewable energy project that GPI undertakes and this is the result."
"NTT Anode Energy's strength is that, unlike other power companies, NTT Group itself is a large consumer, consuming about 1% of Japan's electricity. The value chain is ready."
“In July 2022, we integrated the energy-related operations of NTT Companies (the entity responsible for constructing and managing facilities within the NTT Group) into NTT Anode Energy. I was in charge of building management, energy management and disaster response for NTT's telecommunications buildings. By leveraging this know-how, I will expand my business to include energy management for data centers, in addition to management work for NTT Group."
--We also provide solutions to achieve carbon neutrality for companies and local governments.
"From now on, we will enter an era of fusion between energy and IT (information and communications technology). An energy management system that enables local production and consumption of produced electricity staying local will be key."
``For example, our company is collaborating with Kawasaki City and local companies to establish a new electric utility that will utilize the heat generated at Kawasaki City's waste incinerator to generate electricity. , this electricity will be produced locally for local consumption. We are expanding these companies' regional grid (power grid) initiatives with local governments across the country."
"NTT has telephone offices in towns across the country. By using storage batteries inside the telephone offices, there can be backup in case of grid power failure. This will be a means of supporting support
To increase profit margins, the company will make efforts to reduce operating costs and increase added value (Photo: Yasushi Kato)
--I heard that the electricity business has low profits.
``Electricity has low profits and low margins. In addition, with renewable energy sources, when the fixed price purchasing period under FIT certification ends, the government will no longer purchase all of the electricity. Operating costs 20 to 30 years after the FIT term ends. The key is how to lower it
“In the case of NTT Anode Energy, one of the company's strengths is having its own customer, NTT Group. Regarding operating costs, NTT will take advantage of its know-how in remotely monitoring electrical equipment in telecommunications buildings across the country. It will be possible to remotely monitor and operate power sources not only in buildings but also distributed throughout the area, such as solar and wind power generation.
“We will undertake the operation and management of buildings and facilities for companies and local governments, reducing maintenance costs for the buildings themselves and accelerating efforts to achieve carbon neutral. These are also high value-added solutions that can improve margins.”
--Please let me know if you have any sales goals.
"Currently, NTT Anode Energy group's consolidated revenue is more than 400 billion yen. We hope to expand this figure to about 600 billion yen by 2027. Not included."
"70 to 80% of our current revenue comes from electricity business to consumers, mainly from NTT Group. We also need to increase sales from the general market beyond NTT Group."
"We will also model our projects for local authorities on leading local authority initiatives and roll them out across the country. Importantly, we can scale how quickly it scales."
--What role do you think NTT Anode Energy will play in the future?
``First of all, we will respond quickly to realize sustainability as outlined in NTT Group's Energy and Environmental Vision. We also want to be a presence that helps local communities achieve sustainability from an energy perspective.'' "Here I am"
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