Under the agreement's terms, West Holdings Corporation will build and maintain roughly 450 solar power stations (with a total installed capacity of approximately 22 megawatts) for Amazon and supply the online retailer with wholesale electricity. MC subsidiaries Mitsubishi Corporation Energy Solutions Ltd. and ElectroRoute will also be involved. The former will manage construction of the solar power facilities and provide tech support, while the latter will forecast the facilities' outputs and hedge power generation imbalances*. The term of this Corporate PPA is approximately ten years, with commercial operations slated to commence in April 2023.
MC is aiming to double its 2019 renewable energy output by 2030 and completely eliminate fossil fuels and CO2 emissions from its power-generation portfolio by 2050. Amazon is demonstrating a similar commitment to decarbonize. The company has set a target to use only renewable energies by 2025 and is now making global moves to both develop them and source more green electricity.
The first such agreement with Amazon originating in Japan, this Corporate PPA was made possible thanks to MC's international work in renewable power generation matching the online retail giant's needs. It will be MC's second renewable-energy agreement with Amazon, following one signed earlier this year through which MC subsidiary Eneco will provide the retailer with power generated by the offshore wind farm, Hollande Kust Noord.
With increasing global pressure on both governments and businesses to address climate change, many companies are urgently looking for ways to shift to renewables and cut the greenhouse emissions generated by their operations. As it works to decarbonize, MC remains committed to decreasing its CO2 emissions through independent initiatives. We will work proactively to reduce greenhouse gasses through the development and supply of renewables.
*Investments to hedge costs incurred through supply-demand imbalances that occur when solar power outputs fail to match their original forecasts.
Source: Mitsubishi Corporation
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