VPP Japan (Shinagawa-ku, Tokyo) will introduce decentralized solar power generation (PV) systems with a total output of 100MW at 500 physical distribution facilities in Japan.
The company announced March 4, 2020, that it has received a syndicated loan of ¥10 billion and raised capital through allocation of new shares to third parties. It aims to introduce 100MW of decentralized PV systems by 2021.
VPP Japan was established mainly by I Grid Solutions Inc (Chiyoda-ku, Tokyo) in 2017 as an operational company specialized in VPP (virtual power plant) services. I Grid Solutions deals with energy-related services for the demand side such as a business related to demand-response at physical distribution facilities.
VPP Japan launched "Off-grid Power Supply Service" in August 2017, aiming to promote the use of decentralized renewable energy systems for physical distribution systems. Thus far, it has built and been operating about 10MW of self-consumption-type PV systems at about 50 facilities across Japan.
This time, as a business fund necessary for the introduction of 100MW of self-consumption-type PV systems, VPP Japan raised ¥10 billion through a syndicated loan provided by Mizuho Bank Ltd (as an agent), The Chiba Kogyo Bank Ltd, The Kita-Nippon Bank Ltd, Kiraboshi Bank Ltd, The Shoko Chukin Bank Ltd, The Towa Bank Ltd and The Keiyo Bank Ltd. The project is one of the largest third party ownership-type renewable energy projects in Japan, according to VPP Japan.
Also, new shares of VPP Japan were allocated to I Grid Solutions and Itochu Corp, which has a capital/business alliance with VPP Japan. Their investment amounts or ratios have not been disclosed. VPP Japan plans to strengthen its alliance with the two companies and effectively introduce 100MW of PV systems.
Furthermore, for establishing a next-generation energy platform, VPP Japan will tie up with the renewable energy and storage battery businesses of Itochu.