Conclusion of Japan’s Largest Comprehensive Solar Carport and On-site Solar Corporate PPA Contract

Aeon Mall Co., Ltd. (Head Office: Chiba City, Chiba Prefecture; President and CEO: Yasutsugu Iwamura; hereinafter, “AEON MALL”) and Sun Trinity LLC (Location: Chiyoda-ku, Tokyo; Representatives: Toshiki Kashihara, Takanori Kitayama; hereinafter, “Sun Trinity”), a joint venture between Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo; hereinafter, “Sumitomo Corporation”), and Shikoku Electric Power Company, Incorporated (Head Office: Takamatsu City, Kagawa Prefecture; Director and President: Keisuke Nagai; hereinafter, “Shikoku Electric Power”), has announced that they have concluded a comprehensive agreement for an on-site solar corporate PPA (Note 1) (hereinafter, the “Agreement”), to install carport-type solar power generation equipment (hereinafter, “Solar Carports”) with a total capacity of approximately 15,000 kilowatts, which will be the largest in Japan in the outdoor parking lots of Aeon Mall’s domestic commercial facilities.

The Agreement covers 12 stores, one of which will have an installed capacity of over 2,400 kilowatts, making it one of the largest Solar Carport installations at a single location in Japan. Starting with the Agreement, AEON Mall and Sun Trinity will accelerate collaboration to introduce Solar Carports to AEON Malls nationwide, with the aim of starting operations at over 50 stores in total by 2025, and will continue to introduce more thereafter.

Solar Carports are attracting more and more attention as an initiative to generate electricity from renewable energy by effectively utilizing parking lot space through the installation of this solar power generation equipment. Since they serve as a sunshade on sunny days as well as a rain shield on rainy days, they not only improve convenience for parking lot users, but also maximize renewable energy while effectively utilizing the parking lot space without impacting the natural environment. Although installation costs tend to be higher than for rooftop solar panels, costs can be reduced by installing multiple units.

Through the Agreement, AEON Mall will be able to use CO2-free renewable energy to cover approximately 18 million kilowatt hours, or the power consumption of approximately 4,300 ordinary households (Note 2).

Based on the “Aeon Decarbonization Vision” formulated in 2018, Aeon Group will gradually switch to locally produced and locally consumed renewable energy (including PPA methods) while promoting the procurement of virtually CO2-free electricity at Aeon Malls by 2025, aiming for a 100% locally produced and locally consumed renewable energy ratio at its directly managed malls by 2040. Aeon Group will continue to expand these initiatives and promote the use of wind power generation, hydrogen energy, storage batteries, etc. in the future, with the aim of operating its directly managed malls using 100% locally produced and locally consumed renewable energy by fiscal 2040.

As a renewable power generation company, Sun Trinity utilizes the power business knowledge and extensive business base in Japan that its investors Sumitomo Corporation and Shikoku Electric Power have cultivated over many years to provide customers with optimal renewable power and environmental value, aiming to develop a capacity of over 1 GW by 2030.

Sumitomo Corporation Group has set a goal of making its business activities carbon neutral by 2050, and is working to reduce CO2 emissions and expand the supply of renewable energy in a variety of businesses. As an important method of supplying clean energy that does not emit CO2, the solar corporate PPA business will contribute to climate change mitigation and the realization of a sustainable society.

Shikoku Electric Power Group has set the challenge of carbon neutrality in 2050 as one of the long-term priority issues in its Medium-Term Management Plan 2025. As a responsible business operator that supports energy supply, it will contribute to achieving carbon neutrality in 2050 by working on “low carbon and decarbonization of power sources” and “expanding the use of electrical energy” through electrification etc.

(Note 1) Solar Power PPA Service
A corporate PPA (Power Purchase Agreement) is a contract under which a company purchases electricity from a power producer over an extended period of time. There are two types of PPAs: on-site solar corporate PPAs, under which the power provider installs, owns, and operates power generation facilities on the customer’s roof or site and sells the power and environmental value to the customer, and off-site solar power corporate PPAs, under which the power provider installs, owns, and operates power generation on land or water away from the customer’s facilities and sells the power and environmental value to the customer via the power grid. These PPAs require no initial investment or management costs for consumers and allow for stable power procurement over the long term.