On July 4, three companies, YKK AP (Chiyoda-ku, Tokyo), Nippon Steel Engineering (Shinagawa-ku, Tokyo), and SMFL Mirai Partners (Chiyoda-ku, Tokyo), announced a new on-site PPA (power purchase agreement) model. This program began operating in May. The system is called ''on-site PPA for supplying excess electricity'', and the excess electricity generated by the on-site PPA will be supplied to another facility using the off-site PPA model.
Business plan
(source: YKK AP)
YKK AP, with SMFL Mirai Partners as the PPA operator, has installed solar power generation equipment with a solar panel capacity of about 1.7MW in its new factory building in Saitama and is expected to start operations in October 2023. However, the facility alone can only use about half of the electricity generated.
Solar panels installed at a new factory building in Saitama
(Source: YKK AP)
Under the plan, Nippon Steel Engineering will act as a retail power supplier, supplying surplus power to the former Saitama Factory building and Saitama Window Factory via the TEPCO Power Grid. Nippon Steel Engineering will be responsible for formulating and submitting the power generation plan as well as bearing the imbalance costs related to the operation of the external PPA.
The off-site PPA will cover 19% of the electricity used by the old Saitama Factory building and 2% of the electricity used by the Saitama Window Factory. The renewable electricity generated from the solar power generation used by YKK AP is expected to reach approximately 1.17 million kWh in the first year, and the CO2 emission reduction effect is expected to be 512 tons per year. The new window building and factory will also be built using 100% renewable energy, combined with fossil-free certification.
YKK AP has set a target of reducing CO2 emissions in Scope 1 and 2 (direct and indirect emissions from purchased electricity) by 80% compared to fiscal year 2013 by fiscal year 2030. We are expanding the introduction of self-consumption renewable energy globally, and as of April 2024, a total of 9.8MW has been introduced in Japan and overseas.
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