Cosmo Eco Power Signs Corporate Power Purchase Agreement with Amazon to Supply Renewable Energy from New Mutsu-Ogawara Wind Farm
July 16, 2024
Cosmo Energy Holdings Co., Ltd.
Cosmo Eco Power Co., Ltd.
Cosmo Energy Group company, Cosmo Eco Power Co., Ltd. (hereinafter, "Cosmo Eco Power" or “the Company”), announced that it has signed a 20-year corporate power purchase agreement (PPA) with Amazon to supply renewable energy produced at the 33-megawatt (MW) New Mutsu-Ogawara Wind Farm, which the Company is currently constructing.
A corporate PPA is a long-term contract between a power producer and a consumer for the purchase of electricity and environmental value1 derived from renewable energy sources. Recently, this type of agreement has been gaining popularity in Japan as a means for consumers to secure a stable supply of electricity and environmental value over an extended period of time2.
As a member of the Cosmo Energy Group, Cosmo Eco Power aims to achieve "Carbon Net Zero by 2050." Amid the transition of the renewables sector from the government-designed FIT scheme3 to the FIP scheme4, the knowledge gained from this agreement will be leveraged in the development and operation of offshore and onshore wind power plants in which the Company aims to participate in the future, and is expected to contribute to making renewable energy a main power source in Japan.
Going forward, Cosmo Eco Power will continue to explore corporate PPAs for wind power plants5 scheduled to start operations together with consumers, with the goal of realizing a carbon-neutral society.
Overview of New Mutsu-Ogawara Wind Farm
| Location | Obuchi, Rokkasho Village, Aomori Prefecture |
|---|---|
| Scheduled operation start date | First half of FY2025 |
| Capacity | 33MW (4.3MW×8 turbines, output curtailed at specified capacity） |
Construction site of New Mutsu-Ogawara Wind Farm
1. Electricity generated from renewable energy offers the added value of not emitting CO2. This is what we refer to as environmental value. The value of electricity itself and the value related to the environment are considered separately, and it is possible to trade them.
2. Renewable Energy Institute "Corporate PPA: Latest Trends in Japan"
3. Feed-in Tariff (FIT): A scheme under which the Japanese government guarantees the purchase of electricity generated from renewable energy sources by electric power companies at a fixed price for a certain period of time, with the aim of promoting the uptake of renewable energy. Enacted in 2012.
4. Feed-in Premium (FIP): A scheme under which a premium is provided in addition to the revenue power producers receive from selling electricity. Enacted in April 2022, this scheme aims to facilitate the further uptake of renewable energy and make it a main power source. Under the FIT scheme, electricity generated at power plants is purchased by electric power companies, while under the FIP scheme, power producers can choose the buyer (sales to wholesale electricity market, direct transactions with consumers = corporate PPAs, etc.).
5. List of onshore wind power projects scheduled to start operation in the future
| Project name | Capacity | Scheduled operation start date |
|---|---|---|
| Shin-Iwaya (Aomori Prefecture) | Approx. 27MW | FY2024 |
| Enshu (Shizuoka Prefecture) | Approx. 6MW | FY2025 |
| Hazaki (Ibaraki Prefecture) | Approx. 15MW | FY2027 |
| Shimamaki (Hokkaido) | Approx. 95MW | By FY2030 |
| Yokohama-machi (Aomori Prefecture) | Approx. 56MW | By FY2030 |
| Kitahiyama (Hokkaido) | Approx. 52MW | By FY2030 |
| Other projects under development | Approx. 360MW | - |
| Total | Approx. 611MW | - |
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(The official language for Cosmo Energy Group's filings with the Tokyo Stock Exchange and Japanese authorities, and for communications with our shareholders, is Japanese. We have posted English versions of some of this information on this website. While these English versions have been prepared in good faith, Cosmo Energy Group does not accept responsibility for the accuracy of the translations, and reference should be made to the original Japanese language materials.)