Efficient Use and Supply of Energy
ORIX is involved in various businesses including energy-saving services and electric power retailing. We contribute to efficient energy use and supply by providing products and services aligned with customer needs that save energy and reduce energy costs.
Efficient Energy Use
Energy-saving services seek to realize energy savings and reductions in CO2 emissions through increased productivity. The services are offered when our customers update or establish new production facilities in factories and buildings.
- Cooperation of the customer, who is our joint applicant, is required for application procedures and asset management.
- This service does not guarantee the attainment of subsidies. We may be required to return the subsidy if we have not complied with the application guidelines.
Because subsidies come from public funds, there are restrictions on property disposition and reporting obligations, and unapproved changes in plans or failure to achieve certain results can lead to demands to return subsidies.
In the case of a joint application, if ORIX returns a subsidy, the customer will be required to pay the amount equivalent to the subsidy returned (unless ORIX is liable for the causes of the return of subsidy).
Examples of provided service
|Type of service||Description||Example of implementation|
|Energy saving service in production facilities||Provision of productivity improvement and energy saving services for the overall facility mainly through renewal of the production equipment, which is the main energy consuming equipment of the facility.||Energy saving by updating production equipment for beverages or chemicals and updates for industrial furnaces and injection molding machines.|
|Electrical / heat supply service||Introduction of co-generation facilities aimed at stable procurement of power, business continuity plans (BCP), and cost reduction.||In addition to introducing high efficient boilers, introducing more effective uses of waste heat.|
|LNG fuel conversion||Conversion of fuels used in factories from heavy oil etc. to LNG (liquefied natural gas) with low environmental impact, for the purpose of reducing CO2||Reduction of CO2 emissions (example reduction level of about 10% to 25% after conversion).|
|Energy saving service for factory utilities||Introduction of energy-saving equipment to energy-intensive factories, mainly through updating utilities.||Introduction of high efficiency utility equipment (air conditioning equipment, lighting equipment, boiler, etc.) to reduce energy consumption (example reduction of about 10% to 35% after introduction).|
|Energy saving service for commercial facilities and office buildings||Introduction of energy-saving equipment to tailored to different types of facilities.||Introduction of high efficiency utility equipment (e.g. air conditioning equipment, lighting equipment, refrigeration equipment, energy management system (EMS) equipment) (example reduction of about 5% to 35% after introduction).|
|Energy saving service for local governments||ORIX has been selected as the representative business entity of various municipalities’ ESCO projects introducing various energy-saving facilities tailored to different types of facilities.||Reduction of energy costs by introducing BEMS, CO2 concentration control / fan volume control in air conditioning units, high efficiency lighting equipment, filtration system controls, etc. (example reduction rate of about 10% to 15% after introduction).|
- Number of contracts Approx. 800 (As of March 31, 2020)
Electricity visualization and automatic control service
Ubiteq’s BE GREEN Next is an energy conservation service that enables the automated control of electricity being used and its visualization. This service links an office’s lighting, air-conditioning, and security equipment to its IT systems. Its functions including automatic shutdown of lighting and air-conditioning if electricity use exceeds the threshold specified by the customer. The amount of energy reduced through this service is about 10% to 15%.
Sale and Lease/Rental of Solar Panels, Electricity Storage Systems and Other Products
ONE Energy conducts wholesaling, leasing rental and other services for solar panels and electricity storage systems. The combined use of solar panels and electricity storage systems allows customers to save electricity generated by solar power for private use, sell surplus electricity, and prepare for power outages. It can also help mitigate the risk of higher electricity fees resulting from increases in surcharges for renewable energy*.
- Renewable energy power promotion surcharge
- Number of contracts Approx. 10,700 (As of March 31, 2020)
Efficient supply of energy
Electric power retailing
As a power producer and supplier, ORIX supplies generated power primarily to privately owned buildings and facilities requiring high-voltage power at reasonable prices within the areas of Tohoku Electric Power Company, Tokyo Electric Power Company, Hokuriku Electric Power Company, Chubu Electric Power Company, Kansai Electric Power Company, Chugoku Electric Power Company, and Kyushu Electric Power Company.
Moreover, ORIX provides a website that offers customers access, free of charge, to information on their monthly electricity usage and charges, as well as a visible log of the electricity they are using in 30-minute intervals. Such data is available to the customer for both viewing and downloading. Customers with multiple contracts also have access to the electricity usage data in a table format that is easy for comparison among the facilities.
Annual electricity sales volume: 1,995,390,000 kWh (FY 2020.3)
Number of electric power supply destinations: approximately 10,000 facilities (as of the end of March 2020)
Operation of power plants
ORIX operates three power plants to ensure stable power supply.
|Name||Agatsuma Biomass Power Plant||Soma Coal and Biomass Power Plant||Hibikinada Coal and Biomass Power Plant|
|Location||Agatsuma, Gunma Prefecture||Soma, Fukushima Prefecture||Kitakyushu, Fukuoka Prefecture|
|Operation commenced||September 2011||April 2018||December 2018|
|Annual transmission capacity (FY 2020.3)||89,954MWh||784,699MWh||835,026MWh|
|Fuel||100% wood chip biomass||Coal and wood chip biomass||Coal and wood chip biomass|
For Agatsuma Biomass Power Plant, please refer here.
At Soma Coal and Biomass Power Plant and Hibikinada Coal and Biomass Power Plant, biomass accounts for approximately 30% or more of the total amount of fuel; this results in lower CO2 emissions compared to coal-fired power plants in the same class and so decreases the environmental burden. Using such world-class environment friendly facilities, ORIX is engaged in advanced measures for a sustainable future.
Through the adoption of safe and secure combustion methods at Agatsuma Biomass Power Plant, Soma Coal and Biomass Power Plant, and Hibikinada Coal and Biomass Power Plant, ORIX will generate and supply electricity in a stable manner that is unaffected by the seasons or weather conditions.
Joint Research into a Tracking System
Together with the School of Engineering at the University of Tokyo, ORIX has started joint research into a tracking system that leverages blockchain technology to prove the production site and history of renewable energy-based electric power, from supply to consumption.
In recent years, as social interest is increasing in the achievement of a carbon-free society and ESG investment, global movements at corporations and local municipalities aiming for RE100, whereby 100% of consumed power is renewable energy. However, an issue had arisen as the source of electricity was unable to be determined for conventional power supply services meaning that the site of production of renewable energy could not be proven. This was because the power produced at power plants is centralized on a power grid before being sent to consumers such as corporations and individuals.
In order to resolve such issues, ORIX and the University of Tokyo will conduct demonstration tests on a system that uses power transaction and GPS data to track various aspects of power generated from renewable energy, including its production site, source of power, production time, and suppliers. Matching verification of distributed networks that are simultaneous/commensurate*1 with multiple power sources such as solar power generators and general households, and multiple consumption sites such as offices, factories and electric vehicles will also be implemented. ORIX and the University of Tokyo also intend to develop a system for minimizing the geographical power transmission distance between multiple generation sites and sites of consumption, will be developed to promote the local production and consumption of renewable energy.
As this will lead to users purchasing power from local power sources, it is hoped that it will contribute to vitalizing local economies while also reducing transmission loss and enabling the efficient use of power. In the future, ORIX will work to develop comprehensive power networks including demand response*2, virtual power plants (VPP) using electric vehicles, as well as coordinating with the disaster systems of local municipalities with the aim of also applying this technology to social systems, such as utilizing electric vehicles as emergency power sources in areas affected by disasters.
Ahead of anticipated changes in the social environment going forward, both ORIX and The University of Tokyo hope to contribute to the popularization of well-balanced renewable energy and the realization of a distributed energy network society.
- As it is difficult to store electricity as it is, the supply and demand volume must constantly be matched in terms of total volume over 30 minutes.
- While the volume of power supplied is conventionally adjusted to match the amount of energy demand, Demand response refers to achieving simultaneous/commensurate amount by having the user adjust the amount of demand.
Participating in a demonstration project to build a virtual power plant (VPP)
ONE Energy is a member of the Virtual Power Plant Construction Demonstration Project*, which is headed by Tokyo Electric Power Company Holdings, Inc. Virtual power plants (VPP) control the charge and discharge of storage batteries installed at the homes of private customers, commercial facilities and factories to make them function like a single power plant. VPPs make efficient use of small distributed energy resources, and provide the economic benefit of being cheaper to establish than large power plants.
- Fiscal 2019 project fostered by the Sustainable Open Innovation Initiative under the auspices of the Japanese Ministry of Economy, Trade and Industry to establish virtual power plants by using energy resources owned by electric power consumers.
Environment friendly power supply services
ORIX has launched environment friendly electrical power supply services (low emissions factor services) in response to growing environmental awareness, as embodied by RE100 and ESG investing. ORIX provides support both for achieving RE100 and for reducing CO2 emissions via increasing the proportion of electrical power generated from renewable energy, such as wind power and biomass power, and purchasing non-fossil certificates and J-Credits.