Kenedix contribute to a sustainable environment by providing renewable energy.
Kenedix Green Energy, Inc. (KGE), a wholly owned subsidiary of Kenedix, Inc., is a company that procures electricity derived from renewable energy sources and provides it to the real estate managed by the Kenedix Group.
By promoting this business, KGE will contribute to the realization of GHG emission reduction target of “Net Zero” for the Group REITs, as well as to the Kenedix Group’s key material issue of “Contributing to a Sustainable Environment.”
Description of Business
By participating in the power procurement business as an electricity service provider and concluding direct long-term relative contracts with power generators, KGE will be able to stably procure the electricity derived from renewable energy sources (including, in part, the electricity derived from real renewable energy through non-fossil certificates with tracking, etc.) and provide it to real estate managed by the Kenedix Group.
Contributing to both the power generators and the Kenedix group through stable, long-term procurement of renewable energy
By concluding long-term PPAs with power generators, the Kenedix group will be able to procure the electricity derived from renewable energy sources sustainably. In addition, the use of the FIP*2 system is expected to improve the profitability of power generators.
Establishment of an electricity procurement scheme as an energy service provider
By utilizing external retail electricity providers that excels in power supply and demand management, KGE can specialize in service provider business to build a scheme for electricity derived from renewable energy sources, enabling 100% renewable energy at competitive costs.
Approach to Physical PPA*3
By contracting with power generators on a relative basis, it is possible to realize off-site*4 type physical PPAs.
- *1 PPA is the abbreviations for the Power Purchase Agreement. PPA is contract in which corporations, such as companies and local governments, purchase the electricity derived from renewable energy sources.
- *2 The Feed-in-Premium (FIP) is a system under which the difference between the base price (FIP price) and the market price is granted as a premium when electricity generated by power generators is sold.
- *3 Physical PPA is a PPA that provides electricity and environmental value as a set.
- *4 Off-site PPA is a form of PPA in which electricity is provided via the power grid from power plants located far from where electricity is demanded.