Kaneka, Itochu switch on solar microgrid at industrial park in Japan

Kaneka and Itochu have switched on a solar microgrid in Japan. It is powered exclusively by 2.2 MW of PV and 6 MWh of storage capacity. It will sell power to the eight companies operating at the site via a power purchase agreement.

Image: Kaneka

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Japanese solar panel manufacturer Kaneka has completed an industrial microgrid in Toyooka, Hyogo prefecture, Japan.

The microgrid is powered exclusively by 2.2 MW of PV systems and batteries with a storage capacity of 6 MWh. The PV systems were installed on the roofs of the eight companies operating at the site. The companies agreed to buy the power generated by the microgrid under a power purchase agreement from Toyooka Regional Energy Service LLC, which is a joint venture between Kaneka Solar Marketing Corp. and Japanese trading giant Itochu. Itochu will be responsible for operating the batteries and trading the energy.

“During normal times, the on-site PPA business will be deployed to supply electric power generated by solar power generation to the facility, and any surplus electricity generated will be sold within the industrial park to realize local production for local consumption of renewable energy,” Kaneka said in a statement.

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Under current regulations in Japan, corporate PPAs must be made by involving electric utilities, except for on-site PPAs. Both physical and virtual PPAs are allowed. Under a physical PPA, electricity buyers pay fixed fees to generators through retailers, including “sleeving” and management fees.

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