Orix Adds Premium to Solar Electricity Price
Tobukaihatsu Co Ltd (Kushiro City, Hokkaido) will sell 30-70% of the electricity generated at Kushiro Hamaterasu Solar Power Plant, a mega-solar (large-scale solar) power plant with an output power of about 1MW, to Orix Corp.
The solar power plant started operation in March 2013. At first, Tobukaihatsu made a contract to sell electricity to Hokkaido Electric Power Co Inc (HEPCO), whose power grid is connected to the power plant, for a price of ¥40 (approx US$0.38, excluding tax) per 1kWh.
This time, Tobukaihatsu concluded a contract to sell electricity to Orix for a price of ¥41 (excluding tax) per 1kWh while basically keeping the contract with HEPCO. As a PPS (power producer and supplier), Orix will purchase electricity generated at the mega-solar plant and sell it to electricity consumers in the Tokyo metropolitan area, etc.
Electricity generated at Kushiro Hamaterasu Solar Power Plant will be sold preferentially to Orix, and the rest will be sold to HEPCO. The ratio of the amount of power sold to Orix depends on how much power Orix will sell, but it ranges from 30 to 70%, according to the contract.
In Kushiro City, several companies other than Tobukaihatsu made contracts with Orix to sell electricity. Orix is running a business of purchasing electricity generated using renewable energies by adding a premium to the tariff set by the feed-in tariff (FIT) policy. Though the company has not disclosed the details about signed contracts (such as the number of cases), it said that it made contracts not only with Hokkaido-based companies but companies based in other regions of Japan.