Toshiba Energy Systems & Solutions Corporation (hereinafter ‘Toshiba ESS’) is pleased to announce that the company has concluded a power purchase agreement applying the FIP (Feed-in Premium), which was launched in this April with a special purpose company (SPC) in which Daiwa Energy Infrastructure invested for Satsuma Green Power No. 2 Photovoltaic Power Plant (Satsuma Town, Satsuma District in Kagoshima Prefecture), which was jointly developed by Daiwa Energy & infrastructure Co., Ltd. (hereinafter "Daiwa Energy Infrastructure") and CO2O Inc. (hereinafter "CO2O")
In this agreement, Toshiba ESS establishes a renewable energy BG*1 , and purchases power generated by renewable energy producers and sells it on the wholesale market or through bilateral transactions. At the same time, Toshiba ESS acts as an agent for power generators by bundling renewable energies and performing balancing and trading operations of these resources using the system of Next Kraftwerke Toshiba Corporation. By contracting with Toshiba ESS, renewable energy generators can establish a pseudo FIT scheme without having to undertake balancing responsibilities and market risks *2. For 20 years, Toshiba ESS will purchase the electricity at a price equivalent to the FIT, combined with the premium price paid by the government, thus contributing to the stabilization of the customer's business earnings.
This project will contribute to the spread of renewable energy as an independent power source through collaboration between Daiwa Energy Infrastructure which has expertise in investing in renewable energy and CO2O which develops and operates photovoltaic power plants, and Toshiba ESS which has power balancing technology. The plant is expected to start operations by this summer and to be covered by the FIP system by early 2023.
Shigehiro Kawahara, Vice President of the Energy Aggregation Div. at Toshiba ESS said, “Toshiba ESS is proud to have closed this major order, and by combining the know-how we have cultivated as an energy equipment manufacturer with digital technology, we aim to realize a carbon-neutral society by providing high value-added services, and contribute to the realization of stable and efficient electric power systems utilizing renewable energy through the renewable energy aggregation business.
*1: A group of operators who calculate the imbalance between planned and actual results.
Refer to image of purchase