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Home » Sumitomo Mitsui Finance & Lease Co., Ltd. Started operation of “On-site PPA for interchange of surplus power generation”

Sumitomo Mitsui Finance & Lease Co., Ltd. Started operation of “On-site PPA for interchange of surplus power generation”

Sumitomo Mitsui Finance & Lease Co., Ltd.
Start of operation of “On-site PPA for interchange of generated surplus power” ~Effective use of renewable energy generated by solar power generation at multiple YKK AP locations~
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Strategic subsidiary of YKK AP Corporation (Representative Director and President: Akira Uozu), Nippon Steel Engineering Co., Ltd. (Representative Director and President: Yukito Ishiwa), and Sumitomo Mitsui Finance & Lease Co., Ltd. (Representative Director and President: Masaki Tachibana), SMFL Mirai Partners shares The three companies (Representative Director and President: Akira Ueda) are operating a new scheme for on-site solar power generation energy services (hereinafter referred to as “On-site PPA*1″), “On-site PPA for interchange of generated surplus power”. The project will begin in May 2024, and the renewable energy generated at the new YKK AP Saitama Factory building in Misato-cho, Saitama Prefecture will be transferred to two other YKK AP facilities (the old Saitama factory building and Saitama Mado in Kuki City, Saitama Prefecture). By consigning electricity to the Saitama Factory, we have established a system to effectively utilize 100% of the renewable electricity supplied from the solar power generation equipment installed in the new building of the Saitama Factory.
[Image 1: https://prtimes.jp/i/84204/105/resize/d84204-105-89557fcac6aef53bd07a-1.png&s3=84204-105-f3c6d4e8f495846e29c6ff38d05d6a7e-721×539.png ]
YKK AP is promoting the conversion of electricity used at its factories to renewable energy, and will begin operating an on-site PPA with a panel capacity of approximately 1,700kW at the new Saitama Factory building in October 2023 with SMFL Mirai Partners as the PPA service provider. However, there was an issue in that the new Saitama Factory building alone was only able to utilize about half of the electricity generated by solar power. For this reason, Nippon Steel Engineering, as a retail electricity company, will supply this surplus electricity to the old Saitama Factory building and Saitama Window Factory via the power grid of TEPCO Power Grid Co., Ltd., making 100% effective use of it. This has made it possible to increase the proportion of renewable energy used throughout YKK AP.
Through this initiative, YKK AP is expected to use approximately 1.17 million kWh/year of renewable electricity from solar power generation in the first year, and the carbon dioxide (CO2) emissions reduction effect*2 will be 512 tons/year. It is expected that it will be.
[Image 2: https://prtimes.jp/i/84204/105/resize/d84204-105-c8718ae7bc42759f4d6f-2.png&s3=84204-105-fb9641dc49d42482fb4eb7c5b21cd1a4-908×435.png ]
YKK AP is promoting the development, sales, and dissemination of highly insulated windows, doors, and curtain walls that greatly contribute to carbon neutrality in buildings, and is aiming to reduce its own CO2 emissions (Scope 1 and 2) by 2013 by 2030. We are working toward the goal of reducing emissions by 80% compared to the fiscal year. In addition to energy savings and process changes during manufacturing, we are globally deploying renewable energy and self-consumption, and as of April 2024, we have installed a total of 9,800kW in Japan and overseas. Along with this expansion, effective use of surplus electricity during holidays will become an issue. With the introduction of this “on-site PPA for power generation surplus power interchange,” YKK AP is now able to use surplus power at other company sites for the first time. In line with the further expansion of renewable energy in the future, we will promote the maximum use of renewable energy by sharing surplus electricity between multiple locations and utilizing storage batteries.
Nippon Steel Engineering leverages its knowledge gained over more than 20 years as a retail electricity company to create regional circular and symbiotic zones through locally produced and locally consumed power, promote the introduction of renewable energy power sources through PPAs, and utilize its adjustment power to the supply and demand adjustment market, etc. We will continue to promote the provision of power solutions, including renewable energy, and contribute to the maximum introduction of renewable energy.
SMFL Mirai Partners is engaged in various renewable energy power generation projects such as solar power, biomass, and hydropower, the provision of CO2-free electricity through on-site/off-site power generation projects, and energy conservation support services. Sumitomo Mitsui Finance & Lease also provides a variety of financing services, including leasing for renewable energy and energy-saving equipment. The Sumitomo Mitsui Finance & Lease Group will contribute to the realization of a decarbonized society by providing one-stop solutions that support companies’ decarbonization efforts.
*1 On-site PPA (Power Purchase Agreement)
A service in which a power generation company installs power generation equipment on the customer’s premises and supplies renewable energy electricity to the customer.
On the other hand, power generation companies provide services to consumers who are far from the power generation site.
   The service that supplies renewable energy electricity via the power grid is called “off-site PPA.”
*2 Carbon dioxide (CO2) emissions reduction effect
Calculated using the national average coefficient of 0.000438 (t-CO2/kWh) based on FY2020 results for electric power consumption that’s all
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