Japan's RENOVA Signs First Direct Solar Power Purchase Agreement with Tokyo Gas

en.Wedoany.com Reported - RENOVA has signed a Direct Power Purchase Agreement (Direct PPA) with Tokyo Gas Co., Ltd., under which a newly built solar power plant developed by RENOVA will supply electricity.

The agreement has officially taken effect, marking RENOVA's first such Direct PPA and signaling the company's renewable energy business beginning to move away from reliance on the Feed-in Tariff (FIT) system.

RENOVA currently develops and operates renewable energy projects including solar, biomass, wind, geothermal, and hydropower. The company stated that this Direct PPA is part of a strategy to develop non-FIT renewable energy businesses, which also includes premium feed-in tariff projects. To accelerate decarbonization and explore new clean energy ventures, RENOVA established a Green Transformation Division in April 2022.

RENOVA said it will continue to supply renewable energy to companies and local governments pursuing RE100 commitments while expanding its decarbonization business footprint. By signing such Direct PPAs, the company aims to drive the transition of its renewable energy generation business toward a market-oriented model. RENOVA added that the agreement will have a minor impact on its financial results for the fiscal year ending March 31, 2023.