TOKYO, Japan: ORIX Corporation (“ORIX”) announced today that it has entered into an agreement with The Hyakugo Bank, Ltd. (“Hyakugo Bank”) to introduce new customers for third-party-owned model (“PPA model”) of solar power generation systems. This marks the first time that ORIX has collaborated with a financial institution for introducing new customers for PPA models.
Through this business tie-up, ORIX and Hyakugo Bank will propose the use of PPA model-based renewable energy primarily to corporations located in the Tokai region of central Japan; in this way, the two companies will provide support for reducing CO2 emissions, decarbonization, and business continuity planning (BCP).
In a PPA model, third parties lease land or roof space from electricity consumers, install solar power generation systems on this property, and supply electricity to the consumers. ORIX will be responsible for installing and operating solar power generation systems and lithium ion storage batteries, and for supplying the generated solar power to consumers.
By adopting a PPA model, electricity consumers can expect to see decreases in their CO2 emissions due to the use of renewable energy. In August 2020, ORIX launched its first PPA model project, and commenced operations at supermarkets located in Gifu and Shizuoka Prefectures*.
ORIX is actively growing its renewable energy power generation business, which encompasses the development and operation of solar power generation facilities in Japan with a total capacity of approximately 1,000 MW, as well as wind power and geothermal power generation.
The company also operates an electricity retail business; in addition to the supply of renewably sourced electricity, ORIX provides ESCO (Energy Service Company) services that cover all aspects of energy-saving methods—from planning to implementation—at customer plants, warehouses, and stores.
Going forward, ORIX will continue to expand its tie-ups with financial institutions. ORIX will also contribute to the realization of sustainable local communities by actively engaging in the local production for local consumption of clean energy, such as via its PPA model, and by providing support for BCP.