Nippon Electric Glass Co., Ltd. (NEG) has signed a long-term off-site physical power purchase agreement (PPA) with The Kansai Electric Power Company to procure renewable electricity and associated environmental value from rooftop solar power facilities in Japan.
Under the agreement, NEG will begin sourcing electricity generated by third-party-owned rooftop solar installations located in Hyogo and Kyoto prefectures from March 2027. The contract will remain in effect for 20 years, supporting the company’s decarbonization strategy through the long-term procurement of renewable energy.
The solar facilities are expected to generate approximately 1.5 GWh of electricity annually, equivalent to the yearly electricity consumption of around 380 average households. The renewable electricity procurement is projected to reduce NEG’s carbon dioxide (CO₂) emissions by approximately 600 tons per year.
An off-site physical PPA enables an electricity consumer to procure renewable electricity generated at an off-site facility through a utility company, along with its associated environmental value, which represents the emissions-free attributes of renewable power.
The latest agreement forms part of NEG’s broader efforts to achieve carbon neutrality by 2050. The company has been expanding its renewable energy portfolio through multiple initiatives, including Virtual Power Purchase Agreements (VPPAs) and on-site solar power installations across its global operations.
In recent years, NEG has signed a solar VPPA in Malaysia, commissioned a self-wheeling solar power project at its Shiga-Takatsuki Plant in Japan, and began operating a solar power generation facility at its Xiamen site in China.
NEG stated that it will continue expanding its procurement of renewable electricity and environmental value as part of its ongoing commitment to reducing greenhouse gas emissions and supporting global climate action.
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