Immediate Release

JCLP Launches a Project to Promote Corporate PPAs
Demonstrate and examine new schemes to expand renewable energy in JapanTokyo, Japan – May 7, 2020 ‐ Japan Climate Leaders' Partnership (JCLP) has announced the launchof a new renewable energy project. The JCLP ‘Project for the Development of Corporate PowerPurchase Agreements (PPAs)’ aims to establish and promote a new facilitation scheme toaccelerate the growth of renewable energy use in Japan.
Aim of the project: As a group of companies working towards a zero‐carbon society, the JCLP
has been making policy recommendations for decarbonization and providing practical support by,
for instance encouraging organizations to join the RE100, EV100 and EP100 initiatives.
Renewable energy is at the core of decarbonization, but in order to move away from the feed‐intariff (FIT) mechanism and maximize the transition, it must be competitive. The lowest accepted
price in the mega‐solar tenders held in FY2019, which took place under the FIT scheme, was below
11 JPY/kWh. We are also beginning to see examples of solar systems for self‐consumption installed
at affordable prices1. Solar PV is clearly becoming a competitive power source.
In recent years, the increase in the uptake of renewable energy around the world has been drivenby (participatory) corporate power purchase agreements (corporate PPAs), a scheme throughwhich corporate consumers of electricity procure renewable energy proactively, for example, byinvesting in power generation projects.
The newly launched JCLP ‘Project for the Development of Corporate PPAs’ aims to create a newscheme in Japan through which the insight and ingenuity of corporate consumers and renewablegenerators can be brought together to promote renewable energy as a competitive power source.
It is hoped that this initiative will enable sustained growth of renewable energy, aid the shift awayfrom the FIT mechanism and even help to make renewable energy the main power source of thecountry.
Project outline:
The Project for the Development of Corporate PPAs will be set up within the JCLP and the following
actions will be taken, primarily by executive members of the JCLP:

1Consider details of the corporate PPA scheme for Japan and examine challenges andobstacles for implementation
Make recommendations on system and policy frameworks for corporate PPAs
Provide support for the development of corporate PPAs (e.g., carry out feasibility studies,consider and help to construct an operational structure)

RE100 Annual Report 2019

Action plan: H1 FY2020: Consider details of PPA scheme; invite and examine power supply
development projects 2020
 H2 FY2020: Assess the state of implementation of the developed corporate PPAs andconsider further actions, e.g., to improve the scheme.
What is a corporate PPA
A corporate power purchase agreement, or a corporate PPA, is a contract under which acorporation buys renewable electricity directly from a power generator. The use of corporate PPAs
is growing, particularly in the US and Europe, as a new way of driving the transition to renewableenergy, led by the private sector, in the post‐FIT world.

Figure: How the scheme works###Japan Climate Leaders’ Partnership (JCLP) is a coalition of companies (141 as of May 2020) thataims to create a zero‐carbon society, built on the idea that decarbonization is essential toeconomic development. It was set up in 2009 to encourage the business sector to develop asense of urgency on climate action. The members share a common goal and proactively
communicate with policy makers, business peers and the civil society. The coalition has a uniquefocus on policy engagement to accelerate decarbonization in the country. Since April 2017, JCLP
has been The Climate Group’s regional delivery partner on RE100, EP100 and EV100 initiatives inJapan. https://japan‐clp.jp/enContact information:
Japan Climate Leaders' Partnership (JCLP) Secretariat+81 046 855 3814 info‐jclp@iges.or.jp