Monthly Report

Osaka Gas partners with Blue Sky Solar to develop 6.4MW for PPA with Nippon Shokubai

October 23, 2024
Solar
This is the third time for Osaka Gas and Blue Sky Solar to team up on developing a non-FIT/non-FIP portfolio.

Osaka Gas formed a 50:50 joint venture with Blue Sky Solar to develop a portfolio of nine solar power plants totaling 6.4MW, the company announced on October 18, 2024. Osaka Gas will purchase all of the generated power and supply it to the chemical manufacturer Nippon Shokubai through an offsite PPA.

The power plants are expected to be commissioned gradually by the end of February 2025. Their construction is being subsidized using the FY2023 demand-led solar power generation promotion subsidy, which covers a portion of costs for projects developed jointly with consumers working to achieve their emission reduction targets.

While Nippon Shokubai’s facilities in Japan are located in the Tokyo, Kansai, and Chugoku TSO areas, the nine power plants will be spread across Japan, reflecting a growing trend of cross-regional PPAs. Three will be located in the Tohoku area, with one each in the Hokkaido, Chubu, Kansai, Chugoku, Shikoku, and Kyushu areas.

S&Dx solar3 LLC, the company that will develop the power plants, is the third joint venture between Osaka Gas and Blue Sky Solar established with the purpose of developing power plants not subsidized by the feed-in-tariff (FIT) and feed-in-premium (FIP) schemes. The two companies established S&Dx solar1 LLC in 2022 and S&Dx solar2 LLC in 2023 with the goals of developing 8MW and 6MW, respectively.

Separately, Osaka Gas recently partnered with Eneglobal to develop FIP solar power plants in Ibaraki Prefecture, with part of the generation expected to be sold to Nippon Shokubai through an offsite PPA too.

If you found the above helpful, join our free weekly newsletter to get a summary of the latest news from the Japanese power market straight in your inbox.

…or create a FREE Japan Energy Hub account to not only receive the newsletter but also access to selected parts of our data modules.

In other news...

Monthly Report - The Japanese Power Industry Executive

Submit the form below to receive a sample issue of The Japan Power Industry Executive.