On February 7, 2024, the US Department of Energy (DOE) and FEMA released a joint study suggesting that Puerto Rico has the potential to transition to 100% renewable energy. [1] The study highlights the feasibility of this transition, emphasizing the island's abundant renewable resources and the benefits of reducing dependence on imported fossil fuels. By harnessing solar, wind, and other renewable sources, Puerto Rico could enhance energy resilience, reduce greenhouse gas emissions, and lower energy costs for residents. The report underscores the importance of strategic planning, infrastructure investment, and policy support in realizing this ambitious goal. It also highlights the role of federal agencies in providing technical assistance and funding opportunities to support Puerto Rico's renewable energy transition. Overall, the study provides a roadmap for Puerto Rico to achieve energy independence and sustainability while enhancing its resilience to future disasters and climate change impacts.
[Japan] Octopus Energy announces investment in Yotsuya Capital
British company Octopus Energy Generation announced on April 5, 2023, that it is investing in Yotsuya Capita, a solar developer in Japan, with the aim to accelerate Japan’s energy transition.[1] Octopus Energy Generation manages over 3 GW of renewable energy assets like wind and solar farms across 13 countries, worth nearly £6 billion. The deal is the company’s first investment in the Asian renewables market, with other projects already lined up in Japan and elsewhere across the continent. The initial seven-figure investment was made on behalf of the Sky fund, which is managed by Octopus Energy Generation, and will enable Yotsuya Capital to develop 250 MW of new solar in Japan over the next five years. Yotsuya Capital plans to sell the solar energy through long-term corporate power purchase agreements (PPAs). The new solar power could generate enough green power for the equivalent of almost 100,000 homes. The move comes as Octopus Energy’s retail business in Japan reaches 160,000 customers.
[1] https://octopus.energy/press/octopus-energy-kicks-off-asian-renewables-push-with-first-japanese-solar-deal/
[USA] Report: Solar and wind growth slowed in 2022
According to a report released by the American Clean Power Association (ACP) on February 16, 2023, the U.S. wind, solar, and battery storage sectors installed a total of 9.6 GW of utility-scale capacity in Q4 2022.[1] The report, titled Clean Power Quarterly Market Report- Q4 2022, found that issues such as supply chain constraints, delays connecting projects to the grid, unclear trade restrictions, permitting obstacles, and uncertainty regarding the Inflation Reduction Act (IRA) slowed project development in 2022. Although Q4 was the best quarter of 2022, it was the lowest fourth quarter for utility-scale clean energy installations since 2019, down 21% from 2021. Annual installations were also below both 2021 and 2020 levels, down 16% and 12%, respectively.
The U.S. added more than 21 GW of wind and solar energy in 2022, below 2021 and 2020 levels. Battery storage had a record year, adding 4 GW of capacity in 2022, surpassing the 3 GW record set in 2021. Land-based wind saw the largest decrease in installations in 2022, with 37% less than in 2021. The report states that this decrease was expected, largely due to the declining value of the production tax credit for wind. The report highlighted that the clean power development pipeline had reached a new high, due in part to the IRA, with 13% more capacity in development queues since Q4 2021 and 135 GW of clean power projects in the late stages of development.
[USA] Minnesota Power increases renewable energy targets for next 15 years
Based on an agreement reached with stakeholder groups as part of its latest Integrated Resource Plan (IRP) proceedings, Minnesota Power announced on November 7, 2022, that it will add up to 400 MW of wind energy and 300 MW of solar energy over the next 15 years as part of its EnergyForward plan.[1] The announcement is nearly double what the utility had initially proposed. The EnergyForward plan aims to help Minnesota Power achieve a full carbon-free energy system by 2050. According to the press release, over the next two weeks, the Minnesota Public Utilities Commission (PUC) will review the proposal negotiated with stakeholder groups, which included clean energy organizations, labor, and host communities. The PUC is expected to vote on the IRP on November 22, 2022. If approved, the utility will advance storage projects that support investment in its renewable portfolio and continue to evaluate the transition of its Boswell Energy Center, a coal-fired power plant. Other resource considerations, such as electric grid strengthening proposals and a previously approved natural gas power plant, have been deferred until future regulatory filings.
[1]https://minnesotapower.blob.core.windows.net/content/Content/Documents/Company/PressReleases/2022/PressRelease11072022.pdf
[USA] NextEra and PGE open first wind-solar-battery project in the U.S.
On September 28, 2022, NextEra Energy Resources and Portland General Electric (PGE) announced that they have opened the first utility-scale energy facilities in North America to co-locate wind, solar, and battery storage.[1] Wheatridge Renewable Energy Facilities, located near Lexington, Oregon, includes 300 MW of wind, 50 MW of solar, and 30 MW of battery storage. Wheatridge is capable of powering the equivalent of 100,000 homes. According to the press release, the construction of the facilities created 300 jobs, and there are now about ten full-time employees operating the facilities. Wheatridge will play a key role in helping PGE meet Oregon’s target of reducing greenhouse gas (GHG) emissions from power served to retail customers by at least 80% by 2030, 90% by 2035, and 100% by 2040.
Early development of the project’s wind farm was done by Swaggart Wind Power, LLC. NextEra Energy Resources purchased the development rights and, together with PGE, expanded the project’s scope to include solar generation and battery storage. Power from the facilities will reach PGE customers via a new transmission line constructed by Umatilla Electric Cooperative that connects the facilities with the Bonneville Power Administration’s regional high-voltage grid. PGE owns 100 MW of the wind project. A subsidiary of NextEra Energy Resources owns the rest of Wheatridge and built and operates the combined facility. It will sell its output to PGE under 30- and 20-year power purchase agreements.
[1] https://newsroom.nexteraenergy.com/news-releases?item=123874
[USA] Report: Renewable costs temporarily higher due to inflationary pressures
According to a BloombergNEF analysis released on June 30, 2022, global supply chain issues, such as cost increases in materials, freight, fuel, and labor, caused price increases for onshore wind and solar power in the last year.[1] The research firm found that the cost of onshore wind has risen 7% year on year while fixed-axis solar has risen 14%. The global levelized cost of electricity (LCOE) has temporarily gone back to where it was in 2019. The firm estimates that the global LCOE for utility-scale PV and onshore wind rose to $45/MWh and $46/MWh, respectively, in the first half of 2022. Battery storage also saw a cost increase of 8.4% year on year due to surging lithium carbonate prices.
The Covid-19 pandemic and the Russian invasion of Ukraine have both affected costs. Although demand for low-carbon technologies bounced back in the second half of 2021, supply has struggled to keep up. Analysts found that despite the temporary cost increase, the gap between the cost of renewables and fossil energy continues to widen. New onshore wind and solar projects are about 40% lower than new-build coal- and gas-fired power.
[1] https://about.bnef.com/blog/cost-of-new-renewables-temporarily-rises-as-inflation-starts-to-bite/
[Japan] Major train company in Japan announces switch to 100% renewable energy
As reported in Associated Press (AP) on April 27, 2022, Tokyu Railways’ network of seven train lines and one tram service was switched to renewable energy sources starting April 1, 2022.[1] Green energy is being used at all of its stations, including for vending machines, camera screens, and lighting. Tokyu employs 3,855 people and connects Tokyo with Yokohama. The company operates more than 64 miles of railway tracks serving 2.2 million people per day. It is the first railroad operator in Japan to have reached 100% clean energy. The company says the carbon dioxide reduction is equal to the annual average emissions of 56,000 households. According to AP, the train operator paid an undisclosed amount to Tokyo Electric Power Co. (TEPCO) for certification of its use of renewables. The renewable sources used for Tokyu’s operations include hydropower, geothermal, wind, and solar according to TEPCO. Tokyu Assistant Manager Yoshimasa Kitano said, “We don't see this as reaching our goal but just a start.”
[1] https://apnews.com/article/technology-science-business-yokohama-japan-e16b51384eed8be69c10cc11d0810a4e
[World] Amazon on path to reach 100% renewable energy five years ahead of schedule
On April 20, 2022, Amazon announced that it has secured 37 new renewable energy projects totaling 3.5 GW of capacity, expanding the company’s renewable energy portfolio by nearly 30%.[1] The projects put the company on a path to reach 100% renewable energy by 2025, five years ahead of the original target of 2030. The projects are located across the U.S., Spain, France, Australia, Canada, India, Japan, and the United Arab Emirates. The projects include three wind farms, 26 solar farms, and eight rooftop solar installations. Twenty-three of these projects will be located in the U.S., spread out across 13 states. This includes a 500 MW solar farm in Texas, Amazon’s largest renewable energy project (by capacity) announced to date. The new projects also include a 300 MW solar project paired with 150 MW of battery storage in Arizona and a 150 MW solar project paired with 75 MW of battery storage in California. Amazon now has a total of 310 renewable energy projects, which, once operational, are expected to produce 42,000 gigawatt hours (GWh) of renewable energy annually.
[1] https://press.aboutamazon.com/news-releases/news-release-details/amazon-extends-position-worlds-largest-corporate-buyer-renewable
[USA] SPP reaches 90% renewables for the first time
Southwest Power Pool (SPP), a grid operator that covers 14 states in the central U.S., announced on March 29, 2022, that it had relied on renewables for 90.2% of the energy needed to meet electricity demand for the first time.[1] The record was set at 2:42 a.m. Central time on March 29, 2022, and beat the previous record of 87.5% set on May 8, 2021. This marks the first time a regional transmission organization (RTO) has served more than 90% of its load with renewables. 88.5% was served by wind alone, beating the previous wind penetration record set on May 8, 2021, of 84%. In a statement, SPP Senior Vice President of Operations Bruce Rew said, “In a decade’s time, our region has gone from thinking of 25% renewable-penetration levels as nearly unreachable to a point where we regularly exceed 75% without reliability concerns. We’re able to manage wind generation more effectively than other, smaller systems can because we’ve got a huge pool of resources to draw from.”
The grid operator also set new wind and renewable production records. At 9:25 p.m. Central time on March 28, 2022, the SPP footprint produced 23,802 MW of renewable energy, beating the previous record of 21,820 MW set on February 15, 2022. And at 10:34 p.m. the same day, wind production reached a record 22,915 MW, surpassing the previous record of 21,820 MW from February 15, 2022.
[1] https://www.spp.org/newsroom/press-releases/spp-sets-regional-records-for-renewable-energy-production/
[USA] Virginia Regulators approve Dominion’s 1 GW renewable energy expansion
On March 16, 2022, the Virginia State Corporation Commission approved Dominion Energy’s plans for a nearly 1,000 MW renewable energy expansion.[1] The expansion includes 15 Dominion Energy Virginia projects and power purchase agreements (PPAs) with 24 other third-party developer projects. Among these projects is Dominion Energy Virginia’s largest solar-plus-storage project to date. The Dulles Solar and Storage project, located at Dulles International Airport near Washington, D.C., will pair 100 MW of solar generation with 50 MW of storage. According to the press release, Dominion’s new projects will generate more than $880 million in economic benefits across Virginia and will support nearly 4,200 jobs. The projects are expected to come online in 2022 and 2023 and will add about $1.13 to the average residential customer’s monthly bill.
The approval is Dominion’s second requested expansion following the passage of the 2020 Virginia Clean Economy Act, which mandated the full decarbonization of Dominion’s generation fleet by 2045.[2] The law requires Dominion to build out 16,100 MW of wind and solar capacity by 2035. Dominion is now nearly halfway to the targets with about 7 GW of solar in operation or under development.
[1] https://news.dominionenergy.com/2022-03-16-Significant-Expansion-of-Solar-and-Energy-Storage-Approved-for-Dominion-Energy-Virginia-Customers
[2] https://www.utilitydive.com/news/virginia-approves-1-gw-renewable-energy-expansion-by-dominion-energy/620540/
[Japan] Japan approves new energy plan, aims to double renewables by 2030
On October 22, 2021, Japan’s Cabinet approved the Sixth Strategic Energy Plan, which sets out a framework for achieving the country’s pledge of reaching carbon neutrality in 2050.[1] A draft of the plan was introduced in July 2021 under the government of former Prime Minister Yoshihide Suga, who announced the 2050 target. No major revision was made during the draft stage. The new plan, compiled by the Ministry of Economy, Trade and Industry (METI) every three years, says renewables should account for 36% to 38% of total power production by 2030, up from the 18% recorded in fiscal year 2019. For nuclear power, the plan keeps the target from the 2018 plan, which called for the energy source to account for 20% to 22% of power production in 2030. In 2019, nuclear power made up 6% of total power generation because many nuclear plants have remained closed due to stricter safety rules introduced after the 2011 Fukushima nuclear disaster. The energy policy plan also includes a target for ammonia and hydrogen to account for about 1% of the electricity mix in 2030. Notably, the plan reduces the share of fossil fuels compared to the 2018 plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.
[Japan] Eneos announces deal to acquire Japan Renewable Energy for $1.78 billion
On October 11, 2021, Eneos Holdings Inc., Japan's largest oil refiner, announced it had reached a deal to acquire Japan Renewable Energy (JRE), a renewables developer and operator, for about 200 billion yen ($1.78 billion/EUR 1.55 billion) to expand its low-carbon business.[1] Under the deal, JPE will be a wholly-owned subsidiary of Eneos in late January 2022. Eneos will buy JRE from the infrastructure arm of U.S. investment bank Goldman Sachs and Singaporean sovereign wealth fund GIC. The agreement is the first big purchase of a renewables firm by a top Japanese oil company.
Founded by Goldman Sachs in 2012, JRE has 708 MW in renewable energy assets, including those under construction on an equity basis. Most of JRE's portfolio consists of solar, onshore wind, and biomass, with some offshore wind projects under development. After the agreement, Eneos' renewable assets will reach 1,220 MW. The deal will enable Eneos to meets its target of having over 1,000 MW of renewables in Japan and abroad by March 2023. The deal will also help Eneos reach its goal to achieve carbon neutrality by 2040.
[1] https://www.reuters.com/business/energy/eneos-says-buy-japan-renewable-energy-177-bln-2021-10-11/
[USA] AEP subsidiary issues RFPs for purchase of wind, solar, and short-term generation
On June 28, 2021, Southwestern Electric Power Company (SWEPCO), a subsidiary of American Electric Power (AEP), announced three Requests for Proposals (RFP) for renewable and short-term generating capacity to supply the needs of its customers.[1] The RFPs seek bids for the purchase of up to 3,000 MW of wind resources, up to 300 MW of solar resources, and up to 250 MW of short-term accredited deliverable capacity. Wind resources must be at least 100 MW, interconnect to the Southwest Power Pool (SPP), and be located in Arkansas, Louisiana, Texas, Oklahoma, Kansas, or Missouri. Solar resources must be at least 50 MW, be located with SWEPCO’s service territory, and interconnect to SWEPCO’s transmission system within SPP. Proposals for short-term capacity must be at least 50 MW from SPP resources. The wind and solar projects must be operational by December 15, 2024, or December 15, 2025, which would allow the projects to take advantage of the federal production and investment tax credits before they expire. Proposals are due by August 12, 2021, and will be subject to regulatory approval from regulators in Arkansas, Louisiana, and Texas and the Federal Energy Regulatory Commission (FERC).
[1] https://www.aep.com/news/releases/read/6155/SWEPCO-Issues-Requests-for-Proposals-for-Purchase-of-Wind-Solar-and-Shortterm-Generation
[Japan] Vestas announces 113 MW wind order in Japan
Vestas, a Danish wind turbine company, announced on June 30, 2021, that it had secured an order to supply turbines for Green Power Investment Corporation’s (GPI) 113 MW Sumita Tono Wind Farm in Japan.[1] The order will be the first project between Vestas and GPI, a Japanese partner of U.S.-based Pattern Energy Group LP. Since 2004, GPI has focused on developing, constructing, and operating renewable projects in Japan. The site is located in complex mountainous terrain in the cities of Sumita and Tono in Iwate prefecture, which the company says demonstrates how the company can leverage its expertise to deliver site-specific solutions in all conditions. The company has developed a customized tower solution to accommodate the site’s unique transport, wind, and seismic load conditions. As a result, the project will feature the tallest hub heights for any wind turbines above a 4 MW rating in Japan, allowing the project to harness new wind resources at higher and more consistent wind speeds.
The order will include supply and supervision of the installation of 27 Vestas V117-4.2 MW turbines. Twenty-three of these turbines will be installed on 114-meter towers, while the other four will be installed on 94-meter towers. In addition, Vestas will also deliver a multi-year Active Output Management 5000 (AOM 5000) service agreement for the wind farm. The AOM 5000 service agreement will provide an energy-based availability guarantee to ensure optimized performance and long-term business case certainty for the customer. Delivery of the turbines will start in the first quarter of 2022, while commissioning is scheduled for the fourth quarter of 2022.
[1] https://www.vestas.com/en/media/company-news?l=22&n=4013797#!NewsView
[Japan] Okinawa Electric Power Invested in NEXTEMS, a Japanese Energy Aggregator
Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.)[1] announced on February 4, 2021 that it has invested in NEXTEMS, a Japanese energy aggregator (Ginowan City, Okinawa Pref.), and will own 23.4% of the shares of the company. NEXTEMS will become an affiliate of OEPC.
NEXTEMS, established in April 2018, provides customers with energy products, including solar power generation systems, battery storage, and EcoCute.[2] The company has been conducting demonstration tests of distributed energy resources’ (DERs) remote monitoring and control with controllable loads. The demonstration tests have been primarily in the Miyakojima area. OEPC and NEXTEMS had previously cooperated to jointly promote renewable energy service providers’ businesses in Miyakojima, and their cooperation helped the area to receive the prestigious New Energy Award in the First Fiscal Year of Reiwa Era (FY 2019) from the New Energy Foundation (NEF, Headquarters: Tokyo)[3], a Japanese organization that promotes the development of renewable energy technologies.
Promoting renewable energy as a main power source is one of OEPC’s focus areas under its long-term Zero Emission Initiative to tackle climate change. Leveraging NEXTEMS’s knowledge and experience with installing DERs control systems, OEPC aims to develop the new solar power and storage battery service that was announced in January 2021.[4]
[1] https://www.nextems.co.jp/profile/
[2] EcoCute is an energy efficient electric heat pump, water heating and supply system.
[3] https://www.nef.or.jp/english/aboutnef.html
[4] https://www.okiden.co.jp/shared/pdf/news_release/2020/210204.pdf
[USA] MISO study concludes 50% renewables in region is achievable but challenging
On February 10, 2021, the Midcontinent Independent System Operator (MISO), an Independent System Operator (ISO) that monitors the electric grid in 15 U.S. states and the Canadian province of Manitoba, published its Renewable Integration Impact Assessment (RIIA).[1] RIIA’s purpose was to better understand the long-term impacts of renewable energy growth in the Eastern Interconnection bulk electric systems with a focus on the MISO footprint, provide examples of integration issues, and examine potential solutions to mitigate them. The report examined renewable penetration levels in 10% increments up to 50%. As of 2021, about 13% of MISO’s systemwide energy is generated from renewables, including 26 GW of wind and 1 GW of solar. There are agreements in place for an additional 6GW of wind and 10GW of solar, bringing renewables penetration up to 20% of total energy. MISO predicts that 30% renewable penetration could be achieved by 2026.
RIIA found that renewable penetration under 30% would be manageable within MISO’s existing framework. However, beyond 30%, transformative thinking and coordinated action between MISO and its stakeholders will be required to manage the challenges associated with renewable penetration such as resource adequacy and reliability. The report also notes that renewable growth is not happening uniformly and nearly 80% of renewable resources in MISO are in the northwest region of its footprint, which concentrates current integration challenges to one area. Reaching 30% penetration, though, would mean that those challenges will be system wide. The study concluded that 50% renewable penetration is achievable, but will require changes in planning, operations, and markets to accommodate more variable energy sources.
[1] https://cdn.misoenergy.org/RIIA%20Summary%20Report520051.pdf
[Japan] Tohoku Electric Power Began Adopting Non-Firm Grid Connection Method to Adapt to Increase the Use of Renewable Energy
On January 13, 2021, Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced it has adopted a non-firm grid connection method to give operators more flexibility to control the power output generated from renewable energy generation, in order to better deal with increased sources of renewable energy. The grid connection is a method of connecting and accessing new energy sources by utilizing the free available capacity of power transmission and transformation equipment, including transmission lines. The non-firm method also allows operators to curtail their output, along with their capacity status, even in normal times.[1] The Japanese government has directed all of its transmission and distribution operators to begin to adopt the non-firm method from January 13, 2021. As part of the government’s directive, Tohoku decided to adopt the method for its bulk-power systems with 500kV and 270kV, in order to optimize the management of the power generated by renewable resources.
The Subcommittee on the Introduction of Renewable Energy and Next-Generation Power Network[2], developed by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), and the Wide-Area System Maintenance Committee[3] of the Organization for Cross-Regional Coordination of Transmission Operators, Japan (OCCTO, Headquarters: Tokyo), have studied the non-firm grid connections and have promoted the adoption of this method. Based on their findings, Tohoku has therefore decided to utilize the non-firm grid connection method. Tohoku will make an announcement once the method has been adapted to Tohoku’s systems.[4]
[1] https://nw.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/01/13/21011302.pdf
[2] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/saisei_kano/index.html
[3] https://www.occto.or.jp/iinkai/kouikikeitouseibi/
[4] https://nw.tohoku-epco.co.jp/news/normal/1218240_2394.html
[USA] EIA: Wind and solar will make up 70% of new capacity in 2021
According to a U.S. Energy Information Administration (EIA) update on the latest inventory of electricity generators, wind and solar will represent more than two-thirds of new energy production to come online in 2021, while battery storage capacity is set to quadruple over the next year.[1] 39.7 GW of new electricity generating capacity is set to start commercial operation in 2021. 15.4 GW of that capacity will be solar photovoltaic (PV), making it the largest source of new capacity at 39%. More than half of new utility-scale solar PV capacity is planned for four states: Texas (28%), Nevada (9%), California (9%), and North Carolina (7%). 12.2 GW of wind capacity is scheduled to come online in 2021, putting it at 31% of new capacity with more than half of additions in Texas and Oklahoma. This is a decrease from 2020, which saw 21 GW of wind come online. 4.3 GW of battery power capacity additions are expected to come online in 2021 which will more than quadruple battery storage capacity. About 3% of the new capacity in 2021 will come from the new nuclear reactor at the Vogtle power plant in Georgia. Planned natural gas capacity additions are set at 6.6 GW, with more than 70% of these planned additions in Texas, Ohio, and Pennsylvania.
[USA] LBNL releases annual studies on wind and solar, solar gaining ground
The Lawrence Berkeley National Laboratory (LBNL) released its annual wind energy data update in August 2020 and its annual utility-scale solar data update in November 2020.[1] [2] During a webinar on December 8, 2020 that compared the data from these studies, Mark Bollinger, one of the lead authors on the studies, concluded that solar is gaining ground on wind and natural gas in terms of projects seeking approval to connect to the grid.[3] On average, although solar is still more expensive, it delivers a greater net financial benefit to customers on average, according to Bollinger.
LBNL noted that new solar projects are benefiting from a growing trend toward "hybrid" combinations of renewable generation with battery storage which help with the “duck curve” challenge. This growing trend is helped by the federal investment tax credit, for which solar and battery hybrid projects are eligible while wind and battery pairings are not. However, whether wind or solar power is cheaper depends heavily on the region due to varying environmental conditions. The lab also emphasized that wind and solar still total no more than 10% of U.S. electricity output and there are several issues that could slow renewable market growth. Phaseouts of federal tax credits could significantly slow down market growth. Bollinger also added that in regions where the two power sources compete, "they tend to cannibalize their own market value” which could further slow down renewable growth.
[1] https://eta.lbl.gov/publications/wind-energy-technology-data-update
[2] https://eta.lbl.gov/publications/utility-scale-solar-data-update-2020
[Japan] JCI member companies request renewable energy regulatory reforms during meeting with Japanese government
On Wednesday, November 18, 2020, the CEOs of Nissay Asset Management, Kao, Ricoh, and Sony, all members of the Japan Climate Initiative (JCI), had a meeting with Taro Kono, Minister for Administrative Reform & Regulatory Reform, to discuss regulatory reforms that will expand renewable energy.[1] During the meeting, JCI representative, Takejiro Sueyoshi, presented a proposal for regulatory reform on renewable energy expansion. According to the CEOs, about half of the energy used at European locations have already been switched to renewable energy, but in Japan, the companies cannot procure renewable energy as expected and therefore their renewable energy usage remains around 1%. Additionally, the companies’ customers are increasingly requiring that their products be made with 100% renewable energy. For example, Apple, a major customer of Sony, is calling for its manufacturing partners to switch to 100% renewables by 2030, but there is only limited renewable energy supply in the factory location. The companies acknowledged that if companies in Japan collaborate, it would be possible to accelerate the development of new technologies for decarbonization. It was also emphasized that the investment risk of renewable energy can be reduced with clear indication of Japanese government’s long-term energy policy. The CEOs requested Japan’s energy mix target of renewable energy by 2030 be set at 40% or more.
[1] https://japanclimate.org/english/news-topics/re-expansion-topleader/