#Japan #Renewable Energy #Enerbank #Midori City #Midori City, Gunma

Midori City Leads the Way in Renewable Energy Procurement

In a significant breakthrough for renewable energy in Japan, Enerbank Co., Ltd., represented by CEO Sato Go, has partnered with Midori City, led by Mayor Akio Sudo, to support the transition of public facilities to 100% renewable energy. This initiative marks the first of its kind in Gunma Prefecture and demonstrates a progressive approach towards sustainability within local government operations.

The program will utilize Enerbank's unique electricity reverse auction service, known as " Eneoku," to facilitate the procurement process. Starting from April 2026, 38 public facilities, including the Midori City Hall and its elementary and junior high schools, will adopt renewable energy sourced through this auction system.

Support Provided to Midori City

Enerbank's assistance encompasses two key areas:
1. Preparation of Specifications and Data for Renewable Energy Procurement (provided free of charge)
2. Execution of Reverse Auction (also without cost)

This collaborative effort aims not only to reduce electricity costs but also to significantly lower greenhouse gas emissions, aligning with Midori City’s broader environmental goals. The decision to proceed with this auction approach recognizes the pressing need for effective strategies to address climate change.

Results of the Power Procurement Initiative

the initial results are promising:

• - Planned Annual Electricity Cost: Approximately 153 million yen
• - Standard Electricity Cost: Around 229 million yen (calculated based on Tokyo Electric Power’s usual rates)
• - Cost Reduction: An estimated 76 million yen
• - Reduction Rate: Approximately 33% savings in energy costs

Furthermore, the shift to renewable energy is projected to reduce greenhouse gas emissions by 2,393 tons of CO2, based on standard emissions coefficients.

Unlike traditional bidding processes that usually restrict participants to one bid, the reverse auction format employed here allows multiple bids from retail electricity providers, resulting in more competitive pricing for renewable energy plans.

Comments from Midori City Officials

The Midori City Sustainable Development Goals (SDGs) Promotion Division expressed satisfaction with the results of the auction:

“Our aim is to achieve a total reduction of greenhouse gas emissions and related targets by 2050. The successful engagement of five companies with twelve bids during the reverse auction not only facilitated our renewable energy transition but achieved substantial cost savings as well. We appreciated the clear guidance provided by Enerbank throughout this process, which made moving forward straightforward. Their prompt responses to our inquiries enhanced our experience.”

Future Plans

While it’s often expected that renewable electricity costs may be higher than conventional options, the Eneoku platform offers the possibility of re-bidding based on observed auction prices from competitors. This flexibility helps entities source renewable energy at fair prices.

Given the recent complexities and price volatility in the energy market, Enerbank’s digital solutions serve to streamline and enhance the efficiency of electricity procurement processes for municipalities. As a company's commitment to promoting zero-carbon cities continues, Enerbank aims to strengthen partnerships with local governments across Japan, supporting initiatives involving the Eneoku auction system and Green Ticket programs.

For further assistance, local governments can access resources dedicated to achieving zero-carbon city objectives via the Enerbank website. Enerbank is committed to fostering sustainable practices across the country, contributing to the collective effort against climate change.

About Enerbank

Founded in July 2018 and located in central Tokyo, Enerbank is focused on developing innovative solutions for energy procurement, including the operation of power auction systems, environmental value trading platforms, and a range of digital services targeted at carbon neutrality. For more information, visit their website.