Daigas and Leapton Sign PPA with FIP Solar, Annual 5MW
Business model based on FIP procurement
(Source: Joint release by Osaka Gas and Leapton Energy)
On March 1, Osaka Gas and Leapton Energy (Kobe City) announced that the power and environmental value generated by multiple solar power plants that utilize the feed-in premium (FIP) developed and owned by Leapton Energy will be distributed in Osaka. Gas concluded a long-term PPA (power purchase agreement) through negotiated transactions. Aiming for continuous development and utilization of renewable energy power sources with a target of 5 MW or more per year.
Based on the contract, Leapton Energy will first develop new photovoltaic power plants that utilize a total of 4MW of FIP in three locations in Miyagi, Ibaraki, and Hyogo prefectures. The remaining 1 MW is currently being adjusted. Osaka Gas will act on behalf of customers in transactions of electric power and environmental value, such as supply to customers, and bear the risk of imbalance costs and earnings fluctuations in electric power and environmental value.
Through this business alliance, Leapton Energy will further expand the scale of its business by increasing the predictability of investment in renewable energy development. Osaka Gas also believes that Leapton Energy's continuous purchase of renewable energy power will lead to further expansion of the scale of its renewable energy business.
By fiscal 2030, the Osaka Gas Group aims to secure 5 GW of renewable energy power sources in Japan and overseas, including in-house development and ownership as well as procurement from other companies. Leapton Energy manufactures solar panels and mounting systems at its own factory, and currently owns 76 domestic and overseas power plants with a total of about 26 MW.
