ORIX Introduces PPA Model for Solar Power Generation Systems of Largest Scale (2.2 MW) in Japan at Factory of Established Manufacturer in Hiroshima
Apr 05, 2021
TOKYO, Japan - April 5 2021 - ORIX Corporation (“ORIX”) and KAIHARA Co., Ltd. (“KAIHARA”) announced today that they will be introducing a power purchase agreement (PPA) model for solar power generation systems with a capacity of approximately 2.2 MW. This capacity is the largest scale for one facility in Japan. Installation is being carried out at KAIHARA’s Sanwa Factory (Jinseki, Hiroshima) and operation is planned to start in June 2021.
PPA is a business model in which a third party borrows the premises or roof of an electricity consumer, installs a solar power generation system there, and supplies the electricity generated by the system to the consumer. ORIX is responsible for installing and operating the solar power generation system of approximately 2.2 MW on the roof of Sanwa Factory, and for supplying the generated electricity to KAIHARA.
By switching a portion of electricity consumption to renewable energy through this initiative, KAIHARA will reduce CO2 emissions from electricity consumed at Sanwa Factory by approximately 12%. In addition, through facility procurement capability utilizing ORIX’s economies of scale, the introduction of this large-scale solar power generation system is expected to allow the electricity charge per unit procured through this PPA model to be reduced by approximately 25% at Sanwa Factory compared to the past rate.
Established in 1893, KAIHARA is Japan’s largest manufacturer of denim fabrics, handling all processes from cotton spinning and dyeing to processing. In addition to CO2 emission reduction so far, including switching the fuel used at its factories from heavy oil to liquefied petroleum gas, KAIHARA is also responding to the requirements from global suppliers working toward the recent move toward zero carbon.
ORIX actively promotes its renewable power generation business—which includes solar power, wind power, and geothermal power—both in Japan and overseas. In Japan, ORIX owns and operates a solar power generation business with a total capacity of approximately 1,000 MW, including approximately 100 land-based and 500 rooftop systems. It commenced operating part one of its introduction of PPA models in August 2020 at supermarkets in Gifu and Shizuoka Prefectures*. Going forward, ORIX will continue to promote the introduction of PPA models nationwide in Japan.
|Facility name||Sanwa Factory, KAIHARA Co., Ltd.|
|Location||1333-1 Kami, Jinsekikogen-cho, Jinseki, Hiroshima|
|Power generation capacity||2,246.9 kW|
|Number of panels||6,156|
■ KAIHARA Sanwa Factory
Investor Relations and Sustainability Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 34 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2020)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2019 – March 31, 2020.”
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