Developing New Business
Toward a Decarbonized Society Based on The Retail Electricity Business
July 25, 2023
In 2018, Shimizu Corporation established the wholly owned subsidiary Smart Eco Energy Co., Ltd. (SEE.) to take on the challenges of new business fields by developing decarbonization solutions based on the retail electricity business.
Proposing Effective Solutions for Sourcing Electricity from Renewable Energy
Although the electricity we use comes from both fossil fuels and renewable energy sources such as solar and wind power, its value as electricity is the same regardless of the source. But today, green power which is renewable energy is recognized to provide more special environmental value than electricity from other sources, by contributing to sustainability and reducing CO₂ emissions. Amid the growing decarbonization movement around the world, demand is growing in society for green power that provides this environmental value.
SEE. offers green power procurement solutions using corporate power purchase agreements (PPAs)* and plays an active role in development of the Green Power Certification business to provide environmental value differentiated from electricity generated by renewable energy.
A corporate PPA is an agreement on long-term, stable purchase by corporate users such as business enterprises and local governments of electricity supplied by power companies from renewables. Since the user does not need to invest in starting up and operating a power plant, it serves as an effective way to procure green power.
Actively Adopting Green Power at Construction Sites and Company-owned Facilities
Shimizu has used a SEE. corporate PPA to adopt green electricity from solar power at its construction sites and company-owned facilities such as the Institute of Technology, Smart Innovation Ecosystem Novare , and leased office buildings. In partnership with Clean Energy Connect, Inc. (CEC), a non-feed-in-tariff renewable-energy power provider, it provides various facilities with stable, long-term supplies of power generated by about 250 low-voltage solar farms across Japan, together with environmental value. Shimizu plans to create new value as a leading player in decarbonization in the construction industry by enhancing its alliances with CEC and other partners in the future.
The First in Japan to Support Clients' Decarbonization Management by Supplying Green Power to New Buildings
SEE. has supplied green electricity from solar power to TD Terrace Utsunomiya (Utsunomiya, Tochigi Prefecture), an office building design and build by Shimizu, since its construction. This is the first example in Japan of using an offsite corporate PPA to supply electricity from renewable energy starting at the time of construction.
Providing Environmental Value through Green Power Certificate
Registered as an independent certifying agency, SEE.'s services also include issuing Green Power Certificate. This certificate certifies only the environmental value component produced by electricity from renewable energy, separately from its value as green power. By purchasing a certificate, a user can rest assured that it is using green power from renewable energy. This also helps to promote use of renewable energy, since the fee purchased for the certificate is returned via SEE. to the owner of the power plant, to fund maintenance management of the facility.
Using Green Power Certificate to Give Back to The Community
As an issuer of Green Power Certificate , SEE. partners with power producers operating certified green power plants, to procure environmental value. Through a joint project with one of these producers, Hyogo Pulp Co., Ltd., it issues green power certificates for electricity generated by a Hyogo Pulp biomass power plant to Sannan Junior High School in the city of Tamba. This project realizes local production and consumption of environmental value by converting all the school's electricity uses to green power.
It also supplies Green Power Certificate for power generated by the solar power facilities of Chuetsu Tekko Co., Ltd to Shimizu construction sites to which Chuetsu Tekko supplies steel frame materials. This helps to promote environmental management through cooperation across the supply chain, by greening site electricity use.
SEE.'s environmental management vision aims for a "Smart Eco Cycle" to build a cyclical, decarbonized society. SEE. and Shimizu will continue to take further action to contribute to community vitality by connecting communities, businesses, and people through decarbonization solutions.