Marubeni Corporation

11/11/2022 | Press release | Distributed by Public on 11/10/2022 20:06

Expansion of Renewable Energy Aggregation Business and Utilization of the FIP Scheme

Nov. 11, 2022
Marubeni Corporation

Marubeni Corporation (hereinafter, "Marubeni"), through Marubeni Power Retail Corporation (hereinafter, "MPR"; a 100% Marubeni Corporation subsidiary) and Mibugawa Electric Power Co., Inc. (hereinafter, "Mibuden"), will start to operate electricity under the Feed-in Premium Scheme*1 from November 14, 2022, and to expand its Renewable Energy Aggregation Business (hereinafter, "Business") *2.

Under the FIT Scheme*3, transmission system operators*4 are responsible for adjustments of imbalance*5 and bearing imbalance costs, whereas under the FIP Scheme, power producers or retail sellers are responsible for such costs. Though healthy demand is expected, to expand renewable energy resources under the FIP scheme (under which power output fluctuates significantly), it is important to reduce and manage imbalance.

Under this Business, Mibuden-owned Hiji No. 1 and No. 2 Power Plants (photovoltaics: 1,000 kW total approved output) located in Ina City, Nagano Prefecture, which are currently in operation under the FIT Scheme, will be converted to the FIP Scheme, and the power produced will be a part of MPR's renewable energy aggregation business. By utilizing AI and big data, MPR is conducting a Demonstration Project*6 on accurate forecasting of power generation and demand for the eventual success of the Business.

Marubeni, together with MPR and Mibuden, will continue to actively engage in expanding renewable energy resources and the Business by utilizing the FIP Scheme, as well as contributing to the stable supply of electricity and achieving carbon-neutrality by 2050.

*1 Feed-in Premium Scheme: A scheme that enhances the adoption of renewable energy. When renewable energy power is sold on the market etc., a premium (subsidy) is paid on top of the sales prices.
*2 Renewable Energy Aggregation: Aggregating renewable energy such as photovoltaics.
*3 Feed-in Tariff Scheme: A scheme that enhances the adoption of renewable energy by guaranteeing the sales of renewable energy power at a certain fixed price during a specific period of time.
*4 Transmission system operator: An entity who transports electricity on a regional level, using its own infrastructure.
*5 Imbalance: Difference between projected and actual electricity supply and consumption volumes.
*6 Demonstration Project: The "Renewable Energy Aggregation Demonstration Project", which is organized by The Ministry of Economy, Trade and Industry.

Overview of Mibugawa Electric Power Co., Inc:
Business Description: Generation and supply of electricity
Head Office: 4-2, Ohtemachi 1-chome, Chiyoda-ku, Tokyo
Representative: Takeshi Yamamoto
Overview of Marubeni Power Retail Corporation:
Business Description: Trading and retail sales of electricity
Head Office: 4-2, Ohtemachi 1-chome, Chiyoda-ku, Tokyo
Representative: Akira Suda