Corporate PPA Agreement Between Marubeni Power and Koshidaka Promotes Renewable Energy Adoption

Energy Transition Collaboration: Marubeni Power and Koshidaka

In a significant step towards sustainable energy initiatives, Marubeni Power Corporation, a wholly-owned subsidiary of Marubeni Corporation, has officially entered into a Corporate Power Purchase Agreement (PPA) with Koshidaka Co., Ltd. This partnership connects Koshidaka’s operations with renewable energy resources, particularly focusing on solar power production.

Understanding the Agreement

Starting this August, Marubeni Power will supply electricity generated from its solar plant, with a capacity of 300 KW, located within the Tokyo Electric Power area to Koshidaka’s karaoke outlets in the Kansai Electric Power area. This 20-year contract aims to provide a reliable supply of renewable energy, enhancing Koshidaka’s sustainability profile in their operations.

The agreement is noteworthy as it capitalizes on the disparity in electricity prices between the Tokyo and Kansai regions. Renewable energy generated in the typically pricier Tokyo area will be supplied to the Kansai area, where electricity prices are lower, facilitated by the Japan Electric Power Exchange (JEPX). This innovative approach allows Koshidaka to access renewable energy at potentially reduced rates compared to sourcing it locally within the Kansai region.

Environmental Commitment and Future Goals

Marubeni aims to support decarbonization efforts and contribute to building a sustainable society by promoting a green transition aligned with its mid-term management strategy, GC2027. The company has set ambitious targets to expand its renewable energy supply to approximately 5 million kW by 2030, significantly increasing its offerings over time.

On the other hand, Koshidaka, under its mission of realizing a fulfilling leisure life and constructing a peaceful world filled with hope, is actively pursuing business expansion both domestically and internationally, operating nearly 700 stores. The company focuses on various circular economy initiatives aimed at contributing to a sustainable society while continuing to evolve.

Offsite Corporate PPA Explained

For a clearer understanding, let’s delve into what an Offsite Corporate PPA entails. A Corporate PPA, or Power Purchase Agreement, allows businesses to procure renewable energy from generators at fixed prices over the long term. This approach is gaining traction as a method for companies to lower their carbon footprint by obtaining cleaner energy. Specifically, an Offsite Corporate PPA denotes sourcing electricity from remote power facilities through conventional distribution networks, making it a promising solution for energy procurement.

About Marubeni Power

- Company: Marubeni Power Corporation
- Established: January 2011
- CEO: Atsushi Suzuki
- Location: Marubeni Building, 1-4-2 Otemachi, Chiyoda-ku, Tokyo
- Capital: 100 million yen
- Business: Electricity trading, agency, representation, and brokerage services
- Website: Marubeni Power