Toshiba Energy Systems & Solutions Corporation ("Toshiba ESS") has signed a renewable energy aggregation service agreement with RENOVA, Inc. ("RENOVA") to purchase renewable energy power from numerous small-scale distributed solar power plants developed by RENOVA and sell the power to the market as an aggregator. We will start with a total of 9 MW (AC: alternating current) of power purchases and aim to expand the scale of transactions based on the future development of RENOVA. The environmental value of the renewable electricity will be supplied by RENOVA to the consumer as a non-FIT non-fossil certificate through a virtual PPA*1 ("VPPA"). For the first time, Toshiba ESS will perform Balancing*2 as an aggregator for VPPAs outside the Toshiba Group, and will also bear the imbalance costs, thereby enhancing the investment predictability of RENOVA as a power generator.
Toshiba ESS started its renewable energy aggregation business in May 2022 and is expanding the business by utilizing SaaS provided by Next Kraftwerke Toshiba Corporation. The company's highly accurate power generation and demand forecasts and its past performance have been highly evaluated, leading to the conclusion of this long-term contract.
Under this agreement, Toshiba ESS will bundle renewable energy sources and perform balancing operations and market trading operations on behalf of the power generator, RENOVA, over the long term. Specifically, Toshiba ESS will prepare and submit power generation forecasts and generation plans, and will also bear the cost of imbalance in the event of a difference between planned and actual generation. The purchased renewable energy power is sold to the wholesale electricity market ("JEPX"). Under this scheme, RENOVA will not be responsible for balancing and will be able to supply non-FIT non-fossil certificates to consumers in a stable and long-term manner. The solar power plants covered by this agreement are scheduled to start operation gradually this year.
Since VPPA allows consumers to obtain non-FIT non-fossil certificates across regions while continuing to use conventional power contracts, Toshiba ESS believes that the needs of environmentally conscious consumers will increase in the future. In response to the growing market needs, the company will accelerate its sales activities for renewable energy aggregation services utilizing the VPPA scheme with renewable energy power generation companies.
Toshiba ESS aims to realize a carbon-neutral society by providing high value-added services by combining its expertise as an energy equipment manufacturer with digital technology, and will contribute to the realization of stable and efficient power systems that utilize renewable energy through its renewable energy aggregation business.
*1： Virtual Power Purchase Agreement：A means by which a consumer procures only the environmental value of renewable electricity generated at a power plant located off the electricity consumer's premises in a virtual manner.
*2：A system in which power generators and retail electricity providers adjust generation plans and actual generation results to match demand plans and actual demand results on a 30-minute basis.