Installation of Large-scale Off-grid Photovoltaic Power
Generation System at the Vietnam Base
Proterial, Ltd.
Proterial, Ltd. (hereinafter, "Proterial") announces that it has installed and begun operating a large-scale on-premises off-grid photovoltaic power generation system at Proterial Vietnam Co., Ltd. (Hai Duong, Vietnam; hereinafter, "Proterial Vietnam") on January 9, 2024. This is the first time that an international base of Proterial has installed a large-scale on-premises off-grid photovoltaic power generation system. The system generates approximately 5.5 million kWh of electricity per year,*1 which is expected to be about 27%*2 of the electricity used by the plant equipment of Proterial Vietnam. The carbon dioxide (CO2) emissions will be reduced by approximately 4,000 tons per year.*1
1. Background
Proterial has defined a contribution to realizing of a decarbonized society as an important management issue (material issue). Regarding CO2 emissions from its operations, Proterial aims to achieve a reduction of 38% in FY2030 (from FY2015) as a medium-term target and carbon neutrality by FY2050 as a long-term target, thereby contributing to the transition to a decarbonized society. To this end, Proterial is working to expand the use of renewable energy and to promote energy conservation.
2. Overview
Proterial's installation of the large-scale on-premises off-grid photovoltaic power generation system at Proterial Vietnam is the first time this has been done at international base. It started operating on January 9, 2024.
Using a so-called Third Party Ownership/Power Purchase Agreement (TPO/PPA) model for photovoltaic power generation, this project is designed to achieve the efficient installation of are newable energy system on the Company's property. The TPO/PPA model is a mechanism in which a power user (the facility owner) purchases electricity generated with a PV power system installed by a company that owns and operates the system (the power seller) on the ground or roof of the premises of the facility owner. The facility owner(Proterial Vietnam) does not have to bear the initial cost of the installation of the system or the cost of maintenance operations, is freed from the need to manage the system, and can handle the photovoltaic power generation system as an off-balance sheet*3 item. This means that the facility owner can reduce the risk of the investment while introducing renewable energy at a large scale. Furthermore, Vietnam is promoting the use of renewable energy as a nation due to the need for environmental conservation and infrastructure development, and local operators are actively developing the TPO/PPA model. This has enabled Proterial to implement the large-scale project quickly.
Having implemented large-scale initiatives for photovoltaic power generation using the TPO/PPA model in Kumagaya and Moka, Proterial aims to ensure an output of more than 35,000MWh/year in FY2030 as a general plan for the introduction of renewable energy (FY2022: approx. 484MWh/year). Proterial will further contribute to the realization of a decarbonized society as a green enabler by developing and offering new products that aid environmental preservation throughout the entire product lifecycle (environmentally conscious products) as well as introducing renewable energy and promoting energy saving to reduce the CO2 emissions of its businesses.
| Location | Proterial Vietnam Co., Ltd. (Vietnam, Hai Duong Province) |
|---|---|
| Planning and operation | I-Renewable Energy Vietnam Co., Ltd. (operating company fully owned by ITOCHU Corporation) |
| Design and installation | Thang Tien Group |
| Annual electricity production (estimated) | 5.5million kWh (First fiscal year) |
| Annual estimated reduction in CO2 emissions | 4,000 tons (First fiscal year) |
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- *1Based on the conditions assumed by I-Renewable Energy Vietnam.
- *2Percentage of energy that is renewable energy (compared to electricity usage in FY2021)
- *3Property that is not recorded as an asset on the balance sheet.