Transition to a carbon-free society
We are committed to popularizing renewable energy including solar, biomass, geothermal and wind to support the transition to a carbon-free society now in progress in countries worldwide. Our solar power generation business in Japan had projects with a capacity of about 1GW* as of March 31, 2020, making us one of the largest solar power producers in Japan. We will leverage the expertise we have acquired to invest in the environment and energy businesses overseas, including renewable energy power generation.
- Total of the mega-solar power generation business and the rooftop solar power generation business; 910MW of capacity is online.
Renewable Energy Business (Japan)
Mega-solar power generation business
We lease idle unused land throughout Japan that is owned by municipalities, companies and other organizations, on which we construct and operate large-scale solar power generation facilities. These mega-solar projects have a total generating capacity of over 1,000kW (1MW).
Mega-solar facilities are long-term projects that generate power for 20 years after the construction and start-up period and involve numerous stakeholders during this long period. As the business owner, ORIX focuses on safe and stable management of all aspects of the project.
Operation and maintenance (O&M) are key to stable power plant operations. ORIX outsources solar power plant maintenance and administration to highly reliable industry players and monitors the status of each plant at all times using remote monitoring systems to maintain high standards and maximize efficiency in our power generation.
Roof solar power generation business
ORIX operates a “rented roof” solar power generation business, utilizing roofs rented out from clients who own large facilities such as factories and warehouses. Unlike ground-mounted solar panels, rooftop-mounted panels do not require development or other preparation of the land, allowing for easy installment and power generation within a short construction period.
In addition to enabling energy generation, the benefit for customers who install rooftop solar panels include effective use of a resource that normally does not produce profit and improved efficiency of air conditioning systems, as solar panels can act as thermal barriers.
From the initial facility design stages, ORIX supports the installment of rooftop solar panels that maximize output. This involvement includes proposals at the design and construction stage of the client’s facility to help maximize the solar generating value of the facility or for the use of lightweight panels when roofs are structurally incapable of supporting heavy panels.
As this business involves the installment of systems into facilities owned by our clients, we ensure safe and secure construction by having dedicated personnel advise and oversee the work of contractors. As for the maintenance and administration of the power generation system, we select and commission highly reliable O&M contractors.
This initiative also involves the use of roofs of facilities owned by ORIX, including commercial facilities.
Operation, management, and maintenance of renewable energy power plants
In August 2018, ORIX established ORIX Renewable Energy Management Corporation (OREM), a company tasked with the operation, management, and maintenance of power plants that use renewable energies such as solar power. OREM operates and manages power plants at 84 sites nationwide, with a combined power generation capacity of approximately 446MW (as of March 2020). Leveraging the knowledge cultivated by ORIX in its renewable energy power plant activities, OREM carries out maintenance and checks both to prevent risks and to ensure continued normal operations at these power plants. OREM also provides immediate recovery support to minimize downtime and power generation losses in the event of malfunctions, and maximizes power generation capacity by using remote monitoring and data analysis to visualize power generation conditions at the plants. By rolling out a comprehensive power plant operation, management, and maintenance service that make use of high-level expertise, OREM intends to contribute to the widespread popularization of renewable energies.
Biomass power generation business
We operate the Agatsuma Biomass Power Plant, a wood chip-fired thermal power station in Higashiagatsuma, Gunma Prefecture. Wood chip-based combustion power generation is a method of generating electricity by burning wood chips in a boiler and rotating the turbine with the hot steam. Wood chips are a biomass*1 substitute for fossil fuels that enables reductions in CO2 emissions. Further, this power plant uses thermal recycling*2 technology, increasing efficiency and reducing environmental impact. The Agatsuma Biomass Power Plant uses domestically sourced wood chips and has a total generation capacity of 13.6MW, and annual power transmission that reached 90 million kWh in FY2020.3.
Sourcing quality wood chips is crucial for a stable power supply. The plant uses waste wood from construction and tree trimming, and also employs thinned timber*3 that formerly went unused. We collaborate with Higashiagatsuma and the local forestry association to support local forest maintenance*4 and increase the recycling rate for wood chips.
Appropriate processing of ash from combustion is also important. The plant outsources this function to recycling companies so that ash from combustion is used effectively.
At the recycling plant, combustion ash is used for production of road foundation materials and solar panel installation platforms.
- This refers to organic resources derived from renewable organisms, excluding fossil resources. Of these, wood-derived materials are called woody biomass and are attracting attention as environmentally friendly fuels.
- Thermal recycling refers to the process of collecting and utilizing heat energy generated from combustion, rather than merely incinerating waste materials.
- This refers to wood that results from thinning operations that thin out dense trees. It is not suitable for building construction materials and is regarded as wood that is difficult to effectively utilize.
- This refers to practices such as planting, conservation, and thinning to aid forests in continuing to function in their role in land conservation, water source cultivation, prevention of global warming, and supply of forest products such as timber.
Wind Power Generation Business
We first invested in Japanese land-based wind power generation in 1995. Since then, we have accumulated knowledge of wind power generation in Japan and overseas, and used it to research and examine developments in our wind power generation business, including offshore wind power.
?We are investing in Akita Araya Wind Farm (total generating capacity 8.7 MW) in Akita City, Akita Prefecture.
?We are considering the feasibility of offshore wind power generation in Choshi City, Chiba Prefecture, via marine geological surveys and other means.
Geothermal power generation business
ORIX's Beppu SUGINOI HOTEL in Beppu City, Oita Prefecture owns and operates a geothermal power plant with a total generating capacity of 1,900 kW (1.9 MW), which is the largest in Japan for private use. Utilizing such geothermal power generation businesses and expertise in the management of hot spring hotels, we aim to branch out into several locations nationwide and contribute to the vitalization of the local communities.
Currently promoted businesses are as follows:
We are set to begin construction of a geothermal power plant with a total generating capacity of 6,500kW (6.5MW) in the Minami-Kayabe region of Hakodate City, in Hokkaido with the goal of completing construction and commencing commercial operations in early spring 2022.
We have entered into an agreement with the town of Hachijo, Tokyo regarding geothermal power generation and plan to start operation of a geothermal power plant with a maximum output of 4,400kW (4.4MW) in 2022.
In Tohoku and Kyushu area, ground surveys for the construction of geothermal power stations have been completed and we are now preparing for the drilling survey.
Support for installing solar power generation systems
As implementation of solar power accelerates worldwide, the cost per unit of power generation systems is dropping, but construction and other costs remain high in Japan, with system prices higher than in other countries. On the other hand, there is a growing shift in use from conventional sales to consumption of self-generated power, backed by amendments to the feed-in tariff system and ESG investment.
We take advantage of our direct, wholesale purchases from manufacturers and our network with construction companies nationwide to support customers' investment in solar power generation facilities at a reasonable price. ORIX provides equipment selection from multiple manufacturers, as well as customized procurement methods including installment payment plans, acquisition of business plan approval of the feed-in tariff system, and consultation on applying for subsidies for solar energy self-consumption system installation. We provide support throughout the process from implementation to maintenance, supporting the smooth installment of facilities for customers.
Total capacity of sold panels: 963MW (As of March 31, 2020)
Solar carport equipment sales
In collaboration with Toyota Tsusho Facilities Corporation, we sell solar carport equipment (PV carport). We have modified a carport type photovoltaic power generation facility manufactured by the leading German manufacturer, Schletter GmbH, to comply with the Japanese Building Standards Act.* Schletter GmbH has the highest share globally in the solar panel mounting industry. As a distributor in Japan, we provide services including proposals for implementation, design, installation, and post-installation maintenance.
PV carports are photovoltaic power generation facilities used mainly in flat spaces such as parking lots, leading to a more efficient use of space. This not only reduces environmental impact, but also improves customer satisfaction by protecting against hot sunrays and the rain. In addition, facilities’ investment costs can be reduced through revenue from the generated electricity and solar self-consumption. Thus, the cost efficiency can be improved in comparison with operating ordinary carports.
- This product was designed by a consortium of several companies, led by Toyota Tsusho Facilities, and has original Japanese specifications.
Corporate PPA（Power Purchase Agreement）
Through its Corporate PPA service, ORIX installs solar power generation systems and storage battery systems at customer-owned facilities, and supplies the electricity generated through these systems to the customers. Customers pay service fees to ORIX depending on the amount of electricity they use. After the completion of the contract period, either the systems are transferred to the customer, or the contract is extended.
In recent years, an increasing number of companies have been focusing on ESG and SDGs. This service serves the needs of such companies who wish to reduce CO2 emissions and limit electricity costs without initial investment burden.
As use of renewable energy for power generation increases, there has been a growing shift across the world from centralized power supply systems based on large power plants to distributed power supply systems based on relatively small local power plants. The Corporate PPA service promotes the use of distributed energy networks, in which factories, warehouses, stores, and other energy users can become energy suppliers by installing and using solar power generation systems and stationary storage battery systems within their premises. ORIX will use its expertise in the generation and supply of renewable energy-based electricity, and in the provision of household storage batteries, to support the widespread use of new supply sources and the efficient consumption of electricity. Going forward, ORIX will seek to become a leading supplier of distributed energy.
Renewable Energy Business (Overseas)
Wind power generation business in India
We are developing and operating a wind power business in India in collaboration with an Indian infrastructure development and investment company, INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED. In October 2019, ORIX acquired all shares of wind power generation subsidiaries and made them wholly owned subsidiaries.
This business has developed a total of 23 wind power plants in seven southwestern Indian states that have appropriate wind conditions with a total output of 873.5 MW (as of March 2020). The generated power is mainly sold to state power companies under a feed-in tariff system, and partially sold to large-scale energy consumers.
The Indian government has announced policy goals to introduce a total of 175GW of renewable energy by the end of 2022; it plans for 60GW of this total to be produced by wind power. Going forward, India’s wind power generation market is expected to continue to grow significantly and, for this reason, ORIX intends to strengthen its wind power generation business in the country.
Distributed solar power generation business in India
In India, we are working on a distributed solar power generation business with the SUN Group, a local mid-sized conglomerate. This involves installing solar power generation equipment on the roofs of buildings or small-scale structures, and the use of the generated electricity by that building or structure. Power generation near sites of electricity demand can limit power transmission loss. Furthermore, electricity from the power company can be used when solar power is insufficient, such as at night or on days with low sunshine. Distributed power generation utilizing sunlight is locally produced and locally consumed, can be installed in small spaces and does not require the costly investment of transmission and distribution infrastructure. This is useful in India where there are many off-grid regions. Based on these advantages compared to the traditional transmission and distribution structure, further demand is expected.
Moreover, demand for green power generated by using renewable energy sources has been expanding among electric power consumers, which is expected to foster the introduction of distributed systems.
Hydropower generation business in Vietnam
ORIX has a stake in Bitexco Power Corporation (“BPC”), a hydropower generation company in Vietnam. BPC hydropower and solar power plants are either in operation or under construction in 20 locations in Vietnam as of March 2020. The largest player in the hydropower generation business, BPC has a total generating capacity of 895MW.
In Vietnam, electricity demand is growing by more than 8.5% annually on average, and in 2030 the demand is expected to triple that of 2015. Against this backdrop, the Vietnamese Government has a policy of gradually liberalizing the electricity market in order to respond to the strong demand for electricity. ORIX employs its expertise in renewable energy and electric power retailing to continue to promote business in Vietnam.
Solar power generation business in the U.S.
As of March 2020, 北京pk赛车官网 USA operates solar power generation facilities at 104 properties in seventeen states throughout the U.S., with a projected total generating capacity of 145,000 kW (145 MW). The facilities comprise a mix of standalone facilities supplying base load to local and regional utilities and commercial and industrial behind-the-meter installations providing power on-site to businesses and institutions.
Overseas geothermal power generation business
Geothermal power development is attracting attention globally—not only in North America and Europe, but also in emerging countries in Asia, Africa, Latin America and elsewhere—as a renewable energy generation method that can provide a long-term, stable power supply that is sustainable, unlike fossil fuels.
We are investor in Ormat Technologies, Inc. (“Ormat”), which runs geothermal power generation business among other businesses.
Ormat is the world's only vertically integrated geothermal company that engages in the design, manufacture, sales, and installation of geothermal power generation facilities. It also independently carries out geothermal resource development and geothermal power generation. The company’s geothermal power generation facilities have established an installation record with total cumulative generating capacity of approximately 3,000,000kW (3,000MW) worldwide and hold about 70% of the world's binary power generation installation capacity, the leading share. In addition, Ormat is developing its business not only in the U.S. but also in Central America and Africa, and has a total generating capacity of 914,000kW (914MW) as of March 2019. Through capital participation, we plan to strategically collaborate with Ormat and to promote geothermal power generation businesses in Japan and Asia.
ORIX UK: Investing in European markets, which lead the world in the field of renewable energy
In January 2018, ORIX established 北京pk赛车官网 UK Limited (ORIX UK) in London, the U.K. ORIX UK acquires interests primarily in renewable energy companies, and thereby seeks to establish foundations for ORIX to develop its renewable energy business. By investing in European markets, which lead the world in the field of renewable energy, ORIX intends to further expand its business around the globe.