Otsuka Corp signs solar VPPA in Japan with Renova

Japanese renewable power producer Renova Inc (TYO:9519) announced on Monday it secured an environmental value sale and purchase agreement (VPPA) with Otsuka Corp (TYO:4768) for an additional 5 MW.

The 30-year contract is tied to the production of 11 GWh of clean power per year from new distributed generation (DG) solar PV power plants. Renova will sell the actual power to the wholesale electricity market and will provide its new customer with non-FiT, non-fossil certificates.

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Renova’s wholly-owned subsidiary First Solar Power GK is the firm that inked the deal. Another unit, namely Daiichi Taiyokohatsuden GK, will be the operator of the planned solar systems.

Construction work on the new solar power systems is planned to begin in the fiscal year ending March 2025. Full operation across all the sites is set to be achieved by the end of March 2028.

This is the second VPPA signed between the companies, following a 6-MW contract that was inked last August. With the new deal, approximately 100% of Otsuka's total electricity consumption will be covered with renewables.