Osaka Gas and Eneglobal will jointly develop 14 solar power plants totaling approximately 15MW in Ibaraki Prefecture, the companies announced on October 17, 2024. The two companies plan to commission the power plants gradually by December 2025.
The power plants will be owned by Eneglobal Green Power No. 2 LLC, a 50:50 joint venture between Osaka Gas and Eneglobal, and will be subsidized using the feed-in-premium (FIP) scheme, which pays generators a premium variable based on wholesale market prices. Osaka Gas will purchase all of the power and renewable energy certificates generated by the portfolio and sell them on to its customers through offsite PPAs arranged by its agent Daigas Energy.
According to the statement, Kyoto Sangyo University and the publicly traded chemical manufacturer Nippon Shokubai will be among the offtakers.
The long-term offtake agreement with Osaka Gas is expected to help the companies secure non-recourse project financing to cover a portion of the development costs. No specific financial institutions were disclosed.
The Japan Energy Hub PPA database shows that Osaka Gas and Daigas Energy have signed multiple PPAs, serving as the retailer sleeving the deals.
Eneglobal has been active in the development, construction, and operation and maintenance (O&M) of solar power plants in the Tokyo TSO area, primarily in Ibaraki Prefecture. According to its website, the company’s portfolio includes approximately 130MW of operational projects and 190MW of projects under development.
