Q.ENEST Holdings will begin offering one-year corporate PPAs, providing an alternative to the prevalent long-term contracts, the company announced on April 7, 2025.
“The trend towards decarbonization in Japan is being led by large companies, and the experience and knowledge gap between them and their supply chains and small and medium-sized businesses is widening,” said the Hanwha affiliate in its statement.
The new service aims to reduce the risks and concerns smaller companies associate with 20-year and other long-term agreements. Q.ENEST will source power and environmental value from Q.ENEST Power’s solar projects and deliver it to its customers via its power retailer Q.ENEST Denki. Customers will be able to choose and switch between physical and virtual PPA models.
When not under contract, the power will be used for self-consumption. As of October 2024, the group owned over 500 assets totaling 80MW.
The launch comes as Japan’s power market transitions from the feed-in-tariff (FIT) scheme to the market-based feed-in-premium (FIP) scheme and corporate PPAs. Short-term contracts could appeal to small- and medium-sized businesses seeking to procure renewables through PPAs without the burden of long-term commitments.
