Initiatives Contributing to Expanding the Introduction of Roof-Mounted Solar Power Plants by Osaka Gas and Prologis - Agreement Concluded on the Purchase of Electricity Derived from FIP Power Plants
March 29, 2024
Osaka Gas Co., Ltd.
Osaka Gas Co., Ltd. (Headquarters: Chuo-ku, Osaka-shi, Osaka; President: Fujiwara Masataka; hereinafter “Osaka Gas”), which aims to be an innovative energy and service company that continues to be selected throughout the ages, and Prologis (Japan Headquarters: Marunouchi, Chiyoda-ku, Tokyo; Chairman and CEO: Yamada Gishu), which is a leading global company owning, operating/developing logistics real estate, were developed by Prologis on the roof of Prologis's own logistics facility “Prologis Park Tsukuba 2.” Owned FIP system*1Today, Osaka Gas signed an agreement (hereinafter “this agreement”) to purchase electricity and environmental value derived from solar power generation equipment utilizing solar power generation equipment for a long period of time at a fixed unit price through relative transactions.
The expansion of the introduction of roof-mounted solar power plants is regarded as important even under the FIP system from the viewpoint of overcoming location restrictions, regional symbiosis, improving resilience, etc., and the application of independent FIP standard prices as roof installation categories began in the second half of fiscal 2023.
Both companies aim to continuously develop and utilize renewable energy (hereinafter “renewable energy”) power sources with a target of 5,000 kW or more per year.
Power generation companies that own power plants utilizing the FIP system, which has been increasing in recent years, are unbalanced*2In addition to operations such as management and buying and selling electricity and environmental values to the market, there is a need to respond to the risk of profit fluctuations associated with these.
Osaka Gas purchases electricity from newly built non-FIT solar power plants that began in 2020, uses it in retail business, and has unique weather prediction technology*3We are working to reduce the workload of power generation operators and the risk of profit fluctuations by utilizing a lot of renewable energy business know-how accumulated from power generation forecasting, etc. Even under this agreement, Osaka Gas will endeavor to resolve issues aimed at making customers and society carbon neutral by managing imbalances and trading electricity and environmental value, and supplying renewable energy to corporate customers working to promote decarbonization.
Under this agreement, Prologis will increase profit predictability from renewable energy development investments by being able to sell electricity at a fixed unit price over a long period of time, and will further expand the business scale of the solar power generation business utilizing the roof of its own logistics facility. Osaka Gas will also continue to purchase renewable electricity from Prologis, leading to a further expansion in the scale of its renewable energy business. The efforts of both companies will contribute to the spread of renewable energy for regional symbiosis.
The Daigas Group aims to achieve carbon neutrality by 2050, and in addition to in-house development and ownership by 2030, including procurement from other companies, is 5 million kW domestically and internationally*4We aim to contribute to the spread of renewable energy sources. Initiatives related to this agreement are also considered to be one of the activities leading to the spread and expansion of renewable energy sources, and will be steadily promoted.
Prologis is targeting net zero greenhouse gas emissions throughout its value chain (scopes 1, 2, and 3) by 2040, and is developing various measures to reduce greenhouse gas emissions. Furthermore, in addition to reducing Prologis' business operations, we are promoting “Prologis Green Solutions” to support green electricity and reduction of environmental impact for tenant companies.
Going forward, the two companies will continue to study measures that contribute to reducing the environmental impact of logistics facilities, etc. by combining the expertise and renewable energy power development capabilities cultivated by Prologis as a pioneer in advanced logistics facility development with Osaka Gas's stable power business infrastructure/know-how, and will continue to work to realize a decarbonized society through the continuous development and supply of renewable energy sources.
| *1: | An abbreviation for the Feed in Premium (Feed in Premium) system. A system in which the difference between the base price (FIP price) and the market price is issued as a premium amount when electricity generated by a renewable energy generator is sold on the wholesale power trading market or in relative transactions. |
| *2: | The difference between the planned power generation value and the actual power generation value. Under the FIP system, power generation operators need to pay an imbalance fee corresponding to the difference between power generation plan values submitted in advance and power generation actual values similar to non-FIT power plants to general power transmission and distribution operators. |
| *3: | By dividing the forecast target area into small high-resolution meshes and performing data analysis, it is possible to perform detailed predictions that take into account topographic effects, etc., and it is also characterized by combining machine learning based on observation data to achieve high accuracy. |
| *4: | Includes projects under construction and for which decisions have already been made, and power supplies applied to the FIT system. |
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