Kao, Mizuho Bank, and Mizuho Leasing announced on April 28 that they have signed a virtual PPA (Power Purchase Agreement) between Kao and Mizuho Leasing Group. This is the second PPA following Kao's headquarters in 2022, and the first time a virtual PPA has been adopted.
Virtual PPA scheme using FIP
(Source: Kao)
Kao will purchase all of the environmental value created by the 15.6 MW solar power plants that will be newly built in several locations in the Kanto region and owned and operated by the Mizuho Leasing Group. The electricity will be used in stages at the Sumida Plant in Sumida Ward, Tokyo.
The virtual PPA scheme utilizes the "Green Purchase Agreement (GPA)" service provided by Digital Grid (Minato-ku, Tokyo). The generated electricity will be sold to the Japan Electric Power Exchange (JEPX) using a feed-in premium (FIP).
Electricity used at the Sumida Plant has already been substantially converted to renewable energy through a feed-in tariff (FIT) non-fossil certificate with tracking. This time, we will switch to renewable energy with additionality through virtual PPA. Annual power generation is expected to be approximately 16.2 million kWh, equivalent to 108% of the power used at the Sumida Plant, and annual CO2 emissions reduction is expected to be approximately 7,336 tons.
