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SECOM and Toshiba Collaborate on Virtual PPA for Solar Energy

In an exciting development in Japan’s renewable energy sector, SECOM Co., Ltd., headquartered in Shibuya, Tokyo, led by President Yoshida Yasunori, has entered into a Virtual Power Purchase Agreement (PPA) with Toshiba Corporation, based in Kawasaki, Kanagawa, under president Shimada Taro. This innovative virtual contract centers around trading the environmental value of renewable energy.

This partnership marks a significant step forward in SECOM's commitment to sustainability, particularly as the company has been actively procuring renewable energy, primarily solar and wind power, for some time. The current Virtual PPA will leverage rooftop solar energy expected to commence operations in October 2026, contributing to SECOM's goal of achieving its RE100 commitment—a global initiative aimed at transitioning companies to 100% renewable energy.

What is a Virtual PPA?

The Virtual Power Purchase Agreement, introduced in Japan in 2022, represents a pioneering model for renewable energy utilization. Under this scheme, businesses can virtually procure the environmental attributes of electricity generated by power plants situated off their own premises. This innovative contract separates the trading of electricity from environmental value, eliminating geographical restrictions and enabling companies to secure environmental credits from power sources located far from their operational sites.

This unique structure promotes a more flexible approach to renewable energy procurement, allowing companies to support and invest in renewable projects that may not be physically near their operations. Hence, it fosters an ecosystem where clean energy initiatives can thrive without limitations imposed by location.

Driving Additionality

A key concept associated with Virtual PPAs is 'additionality.' This principle emphasizes the need to generate new renewable energy sources for society and encourage investments in novel renewable energy infrastructure. Given the rising urgency of climate change, the importance of additionality is gaining momentum as businesses increasingly consider it a critical criterion when sourcing renewable energy.

By utilizing more newly established renewable energy facilities, SECOM intends to not only enhance its own emissions reductions but also contribute to the overall increase in Japan’s renewable energy share. This effort aligns perfectly with their commitment to reducing global warming impacts through proactive sustainability measures.

Continuous Commitment to Sustainability

SECOM's collaboration with Toshiba is just one facet of their broader sustainability strategy. The company is dedicated to expanding its renewable energy usage over the long term while paving the way for more environmentally friendly practices across industries. By engaging in agreements like this Virtual PPA, SECOM demonstrates its leadership in the green energy space, paving the way for other businesses to follow suit.

For further information on SECOM’s sustainability initiatives, visit their dedicated webpage on climate change prevention at SECOM Sustainability.

Additionally, the successful acquisition of the SBT (Science Based Targets) certification and joining of the RE100 initiative in July 2021 reflects SECOM’s earnest dedication to sustainable business practices. The announcement can be found in their report.

As the world continues to confront pressing climate challenges, partnerships like those between SECOM and Toshiba serve as vital catalysts for positive change, fostering a greener, more sustainable future for all.