ORIX Corporation ("ORIX") announced today (August 7) that it has launched part one of its third-party-owned model ("PPA model") of solar power generation systems that incorporate business continuity planning (BCP) functions. The systems have now commenced operations at two stores operated by Valor Co., Ltd.: Supermarket Valor Shimoedo Store (Kani City, Gifu Prefecture) and Supermarket Valor Misonodaira Store (Fujinomiya City, Shizuoka Prefecture).
A PPA model is a business model in which a third-party borrows the real estate or roof of an electricity consumer, installs a solar power generation system, and supplies the electricity generated by this system to the consumer. In this model, ORIX is responsible for installing and operating solar power generation systems, lithium-ion storage batteries, and energy management systems ("EMS"), and supplying the generated electricity to consumers.
The benefits to consumers are twofold: first, the use of renewable energies and the energy-saving functions of EMS can be expected to reduce CO2 emissions; second, in the case of power outages due to natural disasters or other reasons, the storage batteries automatically begin supplying electricity, so enabling facility operations to continue even in times of emergency.
The market for PPA models is forecast to expand approximately from 4.3 billion yen in 2019 to 138.2 billion yen in 2030*. The factors behind this expansion include falling prices of solar power generation systems and storage batteries and an attendant decrease in power generation costs, and increased demand for clean energy due to rising awareness of environmental issues and ESG.
ORIX operates a solar power generation business in Japan with a total capacity of approximately 1,000 MW; the company has also rented storage batteries to more than 10,000 households. ORIX intends to use the expertise it has acquired through these activities to promote the implementation of PPA models across the country.
Going forward, ORIX will actively engage in the local production for local consumption of clean energy, support the BCP initiatives of its customers, and so contribute to the realization of sustainable local communities.
* Source: "Investigation into solar power generation technologies and focal business markets, which are expanding as captive consumption electricity sources," issued by Fuji Keizai Co., Ltd. in October 2019.
