Japanese renewable power producer Renova Inc announced on Monday the successful attainment of an environmental value sale and purchase agreement (VPPA) with Otsuka Corp for an additional 5 MW of clean power.
The 30-year contract is linked to the production of 11 gigawatt-hours (GWh) of clean energy per year from new distributed generation (DG) solar photovoltaic (PV) power plants. Renova, through its subsidiary First Solar Power GK, will sell the generated power to the wholesale electricity market and provide Otsuka Corp with non-feed-in-tariff (FiT), non-fossil certificates.
Daiichi Taiyokohatsuden GK, another unit under Renova, will operate the planned solar systems. Construction work is scheduled to commence in the fiscal year ending March 2025, with full operation across all sites expected by the end of March 2028.
This marks the second VPPA between the two companies, following a 6 MW contract inked in August of last year. With this latest agreement, approximately 100% of Otsuka's total electricity consumption will be covered with renewable sources, furthering their commitment to sustainable energy practices.