JTEKT (Kariya City, Aichi Prefecture), a major Toyota Motor Corporation/parts manufacturer, and PHOTON CAPITAL (Shibuya Ward, Tokyo) announced on November 2 that they have signed a virtual PPA (purchase agreement). electricity). PHOTON CAPITAL is a company that creates, invests and manages funds that primarily invest in solar energy generation businesses. This time, the company will develop a new super solar (large-scale solar power plant) with a total capacity of 11.9 MW connected to the Chubu and Shikoku regions, and JTEKT will receive value environment of the amount of electricity generated.
Business plan
(Source: PHOTON CAPITAL)
The PPA will develop degraded land in Kochi City, Ozu City in Ehime Prefecture, Tajimi City in Gifu Prefecture, and Kihoku Town in Mie Prefecture, and build a total of six new large solar power plants does not depend on electricity prices (FIT system). During construction, drainage canals will be built, roads connecting to the power plant will be expanded, contributing to improving the living environment of local people.
The electricity generated will be sold to the electricity market through an aggregator and the environmental value will be provided to JTEKT in the form of zero-FIT fossil-free certificates. This will reduce CO2 emissions from JTEKT's domestic operations by approximately 6,300 tons per year. It is expected to begin operations from 2024.
Furthermore, on November 8, Electric Power Development (J-Power) and PHOTON announced that they have entered into a consolidated services agreement under the same PPA. J-Power will be responsible for managing the amount of power generated (forecasting power output, simultaneously managing planned value and power trading) and will also bear imbalance costs.
The term of the aggregate agreement and virtual PPA is 20 years. PHOTON Sustainable Solar Investment LLC, operated by PHOTON, entered into the contract through the special purpose company (SPC) in which it invested. In addition to this project, the company has entered into a non-recourse project financing agreement with Orix Bank. The amount has not been disclosed but is believed to be in the billions of yen.
