ORIX Launches Part One of its Third-Party-Owned Solar Power Generation System Model with BCP Functions
TOKYO, Japan: ORIX Corporation (“ORIX”) announced today 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.
|Facility name||Supermarket Valor Shimoedo Store||Supermarket Valor Misonodaira Store|
|Address||3208 Shimoedo, Kani, Gifu||687 Misonodaira, Fujinomiya, Shizuoka|
|Installed capacity||439.2 kW||190.8 kW|
|Number of panels||1,464||636|
|Storage battery capacity||20 kW||20 kW|
■ Supermarket Valor Shimoedo Store
■ Usage examples in normal situations and in times of disaster
・ORIX installs solar power generation equipment, and renewable electricity is supplied to consumer facilities.
・In cases where electricity demand exceeds supply from solar power generation equipment, electricity is sourced from electrical power companies as usual.
・In normal times, renewable electricity is stored in linked storage batteries.
・When power outages occur—for example in times of disaster—storage batteries begin to supply electricity. The storage batteries supply electricity at all times of day to pre-designated equipment such as facility lighting, POS registers, and sockets for charging smartphones.
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 37 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2020)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2019 – March 31, 2020.”