Sinanen Holdings Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo, President and CEO: Taro Nakagome), a comprehensive energy, housing, and daily-life services provider, its subsidiary Sinanen Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo, President and CEO: Yoshinori Komatsu), which provides energy solutions, and Clean Energy Connect, Inc. (Headquarters: Chiyoda-ku, Tokyo, President and CEO: Teppei Uchida), which provides decarbonization solutions to customers that include companies participating in the RE100 and decarbonization management companies, etc. began operating an off-site corporate PPA^*1 service scheme (hereinafter "this PPA") from November 2024. Under this agreement, along with environmental value, electricity from renewable energy sources procured from the solar power generators developed by Clean Energy Connect would be provided to the headquarters building of Sinanen Holdings Co., Ltd. (Shinagawa-ku, Tokyo).

■ Provision of renewable energy power through this PPA

Sinanen Holdings and five group companies relocated to the new headquarters building in Higashi-Shinagawa, Shinagawa-ku, Tokyo in July 2024, and began operations afterward. Solar power panels were installed on the rooftop of this new headquarters building and it was supplied with electricity 100% procured from equivalent renewable energy sources from Sinanen. From November, the Company adopted a corporate PPA scheme to receive electricity supply from solar power plants with additionality^*2 for exclusive use.

In this PPA, Clean Energy Connect provides solar power generation facilities with 15 years or less of operation within the jurisdiction of TEPCO for the exclusive use of Sinanen Holdings and supply electricity to the headquarters building of Sinanen Holdings through a power transmission and distribution network. Sinanen will be responsible to sell this electricity as a retail power provider.

Also, the excess electricity generated during the daytime will be sold off to the market. By obtaining only the environmental value and granting non-FIT non-fossil certificates, it will allocate this power to a time period when power is in short supply. As a result, it will be possible for all used electricity to be sources from equivalent renewable energy sources with additionality.

This PPA is a scheme that combines both physical corporate PPA providing both power and environmental value, and virtual corporate PPA that provides only environmental value.

Virtual corporate PPA systems that only transact environmental value are gradually spreading in Japan. However, based on the stable, low price of recent electricity market price, the price as environmental value and volatility may relatively increase as environmental value is centered on settling the difference with market price.

On the other hand, in this PPA, electricity volume and environmental value is provided at a fixed price for the time periods when generated solar power and electricity used in business activities during the day match. If there is excess generated electricity, the difference of environmental value of this portion is settled when providing it to a customer. Therefore, this system can provide electricity and environmental value for a stable portfolio for these customers.

In this system, 46% of electricity usage costs and environmental value is fixed long-term, while only the remaining 54% of electricity value is variable.

■ Portfolio reference image

■ Contribution to further decarbonization through the SINANEN Akari no Mori Project

Sinanen, towards a sustainable future, has developed the SINANEN Akari no Mori Project, which will protect the abundance of the ocean and forest through the use of clean energy, and is actively working on activities that nurture nature in partnership with various organizations. In addition to reducing CO2 emissions, carbon negative will be realized through working on environmental conservation activities. Sinanen Holdings is also participating in this SINANEN Akari no Mori Project.

Sinanen and Clean Energy Connect will continue to deepen their cooperation in the future in order to contribute to CO2 emissions reduction of companies in Japan through various methods of corporate PPA services as well as spread renewable energy with additionality.

Sinanen Holdings Group will take efforts to reduce its customers' greenhouse gas and CO2 emissions by strengthening the development and expanding the introduction of renewable energy to reduce the environmental impact of society, and in doing so contribute to the realization of a decarbonized society.

*1 An off-site corporate PPA (power purchase agreement) service is a long-term contract under which a customer purchases renewable energy power and environmental value from a power generation company. The model involves the transmission of electricity from a remote power generation facility to a customer (in this case, the new headquarters building of Sinanen Holdings Group) through a power transmission and distribution network.
*2 Additionality is a measure of a company's chosen procurement method that promotes investment in renewable energy and leads to the substitution of fossil fuels, and is considered important among companies that are actively engaged in renewable energy procurement. This PPA fulfills the conditions for additionality by using non-fossil certificates for power generated from renewable energy generation facilities with 15 years or less of operation.

■ Sinanen Holdings Co., Ltd. https://sinanengroup.co.jp/en/

Founded in 1927, Sinanen Holdings Co., Ltd. is the holding company of a corporate group offering comprehensive services related to energy, housing, and daily life. With the mission of the Group to contribute to realizing a comfortable life for all customers in their communities through energy and home & life services, we provide Retail/Wholesale Energy & Related Business for consumers, Energy Solution Business for corporations, and non-energy businesses such as bicycle, bicycle sharing, environmental and recycling, system development, antimicrobial, building maintenance and management, and other services. We are also strengthening efforts to develop new environmentally-friendly businesses and corporate initiatives to achieve a decarbonized society.

■ About Sinanen Co., Ltd. https://sinanen.com/en/

Sinanen Co., Ltd. is a corporate energy service company of the Sinanen Holdings Group. We are operating a wide range of businesses such as petroleum product sales, renewable energy investment, electric power sales, and solar power generation maintenance.

■ About the SINANEN Akari no Mori Project https://sinanen.com/en/project/　

With a view to the realization of a sustainable future, aiming to achieve the SDG Goal 14, "Life below water" and Goal 15, "Life on land," Sinanen established the SINANEN Akari no Mori Project in 2020 to protect rich nature by promoting the use of clean energy and has been carrying out activities under this project.

Through this project, we are actively engaged in activities related to the protection of nature and ecosystems in the sea and on land, while collaborating with various organizations.

Currently, we provide support for a range of organizations, including: C.W. Nicol Afan Woodland Trust (Nagano), which is working to restore forests to restore biodiversity; Enoshima Aquarium (Kanagawa), which is engaged in activities related to marine nature conservation and ecosystem protection; the National Land Afforestation Promotion Organization (Tokyo), which promotes afforestation with the participation of the public; the Hyatt Regency Seragaki Island Okinawa (Okinawa), which is engaged in the Seragaki Island Clownfish Breeding Project to breed clownfish and conserve and restore them in the ocean. We also hold events in which customers can participate together.

■ About Clean Energy Connect, Inc.

Clean Energy Connect is a company providing speedy and flexible one-stop services for green electricity solutions to achieve customer goals. For customers, including decarbonization management companies and RE100 participating companies, etc., it covers everything from proposals for implementing optimized green electricity systems to execution support and effectiveness verification after implementation.

Clean Energy Connect currently supports the decarbonization/RE100 goal achievement of many major companies, including Amazon, Dai-ichi Life, NTT Group, Nomura Real Estate Group, Nagase & Co., Sugi Holdings, Fuji Film, Google, Azbil, Mitsubishi Estate, and others. In the future, it will promote renewable energy usage rate improvements 24 hours a day, 365 days a year by combining solar power, batteries, wind power, and BEMS, etc. In order to achieve the decarbonization/RE100 goals of its customers, it will continue to provide cutting-edge green electricity solutions and realize tangible and effective measures to address the climate change issue.

[Contact for inquiries about the electric power business]

Corporate Planning and PR Team, Corporate Planning Department, Sinanen Co., Ltd.
E-mail: sinanen-kouhou@sinanengroup.co.jp

GX Solutions HQ, Clean Energy Connect, Inc.
TEL: +81-50-5526-8393 E-mail: info@cleanenergyconnect.jp　

[Media inquiries]

Kimura and Kiryu, Public Relations, Sinanen Holdings Co., Ltd.
E-mail: kouhou@sinanengroup.co.jp

GX Solutions HQ, Clean Energy Connect, Inc.
TEL: +81-50-5526-8393 E-mail: info@cleanenergyconnect.jp