Kazuno City (Akita Prefecture), local bank and business operator based in the city established a local PPS (power producer and supplier) through joint investment July 17, 2019.
The local PPS, "Kazuno Power KK," will locally produce and consume renewable energy-derived electricity in the city, whose energy self-sufficiency is higher than 300%, in the aim of circulating electricity-related money in the region and directly contributing revenue to the region.
The PPS aims to supply low-cost electricity by purchasing stable renewable energy-based power sources in the city at low costs. The company claims that the business can be stabilized by reducing not only procurement cost but also the risk of price fluctuation in the market.
It will make contributions to the region in various ways by using the revenue for giving donations to the city, investing in new renewable energy-based facilities, stably supplying electricity, etc.
The PPS will provide (1) a TEMS service that enables to check the amount of power consumed every 30 minutes in almost real time and (2) "DR discount menu," which discounts electricity charges in accordance with power-saving requests. Also, the company will consider a self-consumption type solar ESCO business. It will entrust supply-demand adjustment to Power Sharing Co Ltd (Asahi City, Chiba Prefecture).
At first, the PPS will conclude a "renewable energy specific wholesale contract" with Tohoku-Electric Power Co Inc and supply electricity by using Mitsubishi Materials Corp's "Nagata Hydraulic Power Plant" (local power source) as a main power source. The hydraulic power plant started operation in 1898 and renewed its water turbine, generator and building as a facility certified based on the feed-in tariff (FIT) scheme in 2015.
The PPS will provide a total of 2.384MW of electricity to 33 facilities owned by the city from April 2020. It intends to increase the capacity while calculating revenue and expenditure.
It plans to obtain a prefecture-run hydraulic power plant in the city and start to supply power to all the city-owned facilities and some privately-owned facilities in fiscal 2023, aiming to supply 8MW of electricity in fiscal 2024. In and after fiscal 2025, it aims to obtain 9.7MW of prefecture-run hydraulic power plants in the city and supply power to the entire city.